Crude Prices Fall Over 1%

EghtesadOnline: Oil prices fell more than 1% on Monday as concerns about rising interest rates, the global economy and the outlook for fuel demand outweighed support from the prospect of tighter supplies on OPEC+ supply cuts.

News ID: ۷۵۲۴۶۲

27 April 2023

Oil prices fell more than 1% on Monday as concerns about rising interest rates, the global economy and the outlook for fuel demand outweighed support from the prospect of tighter supplies on OPEC+ supply cuts.

Brent crude slipped 91 cents, or 1.11%, to $80.75 a barrel, while US West Texas Intermediate crude was at $76.96 a barrel, also down 91 cents, or 1.17% lower, Money.usnews.com reported.

Both contracts fell more than 5% last week, their first weekly drop in five, as US implied gasoline demand fell from a year ago, fueling worries of a recession at the world's top oil consumer.

Weak US economic data and disappointing corporate earnings from the tech sector sparked growth concerns and risk aversion among investors, CMC Markets analyst Tina Teng said.

The stabilizing US dollar and climbing bond yields are also adding pressure on commodity markets, she added.

Central banks from the United States to Britain and Europe are all expected to raise interest rates when they meet in the first week of May, seeking to tackle stubbornly high inflation.

China's bumpy economic recovery from Covid-19 also clouded its oil demand outlook, although Chinese customs data showed on Friday that the world's top crude importer brought in record volumes in March.