Investing.com — Oil prices fell further on Friday as markets awaited labor market data for more cues on U.S. monetary policy, although fears of rising interest rates and disappointing data from China put crude on course for steep weekly losses.

The Federal Reserve became a key point of focus for oil markets this week, after hawkish signals from the bank’s top officials battered crude prices with the prospect of higher interest rates. Markets grew fearful that a potential U.S. recession, triggered by tighter monetary conditions, could wallop oil demand this year.

Brent oil futures fell 0.4% to $81.25 a barrel, while West Texas Intermediate crude futures fell 0.6% to $75.25 a barrel by 22:38 ET (03:38 GMT). Both contracts were set to lose about 5% this week, their worst week since late-January.