US: Oil is headed for an estimated 8% loss this week, with demand worries continuing to weigh on the market. On Friday, West Texas Intermediate was trading near $74 a barrel after paring earlier gains.

On top of this, Saudi Arabia reduced prices for crude sold to Asia and Europe in February, creating concerns about short-term outlooks. These troubles are further compounded by the resurgence of Covid-19 cases in China following the lifting of restrictions, though mobility is expected to increase due to Lunar New Year holidays. This downward spiral has left many feeling anxious about the status of oil markets, but it remains to be seen if losses will continue or if the situation will turn in favor of traders.

Crude prices have been struggling to stay afloat due to expectations of an imminent oversupply. This week, the International Monetary Fund issued a warning that one-third of the global economy could enter a recession by 2023. To make matters worse, Federal Reserve Bank of St. Louis President James Bullard suggested that US interest rates will remain low for some time. Now, all eyes are on non-farm payroll data set to be released this Friday, as this will help determine whether monetary tightening is in order. Investors are keenly awaiting these new insights before making any major decisions about the direction of crude prices.

oil prices will not be able to experience a large upside in the near future due to an uncertain economic climate. To determine the future direction of crude markets, investors are relying on today's US payroll report for guidance.

Last week, US exports of crude and refined products increased by 1.33 million barrels. At the same time, commercial crude inventories rose by 1.69 million barrels, while gasoline stockpiles decreased.