Oil prices settle up at the weekend; China demand hopes outweigh recession worry

SINGAPORE, Oct 22 (Reuters): Oil prices settled up on Friday night (Oct 21) as hopes of stronger Chinese demand and a weakening US dollar outweighed concern about a global economic downturn and the impact of interest rate rises on fuel use.

To fight inflation, the U.S. Federal Reserve is trying to slow the economy and will keep raising its short-term rate target, Federal Reserve Bank of Philadelphia President Patrick Harker said on Thursday in comments that weighed on oil.