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Oil prices fall 5% after IMF cuts growth outlook According to Reuters



© Reuters. FILE PHOTO: Tanks are seen at Marathon Petroleum’s Los Angeles Refinery, which processes crude domestically and imports it into the California Air Resources Board (CARB), gasoline, diesel fuel and petroleum products other, in Carson, California, US, Ma

By Marcy de Luna

HOUSTON (Reuters) – Oil prices fell about 5% in volatile trading on Tuesday on worries about demand after the International Monetary Fund (IMF) cut its economic growth forecast and warned of inflation. broadcast higher.

global benchmarks, fell $5.91, or 5.22%, to $107.25 a barrel, while US West Texas Intermediate fell $5.65, or 5.22%, to $102.56 / bin.

Prices fell despite output cuts from OPEC+, which produced 1.45 million barrels per day (bpd) below target in March, as Russian output began to fall following Western sanctions on invasion of Ukraine, according to a report from the union of manufacturers. seen by Reuters.

The report showed that Russia was about 300,000 bpd lower in March at 10.018 million bpd, based on secondary sources.

OPEC+, the OPEC group and its allies led by Russia, last month agreed to increase monthly oil production to 432,000 bpd in May, countering additional pumping pressure from major consuming countries.

The IMF downgraded its forecast for global economic growth by nearly a percentage point, citing Russia’s aggression, and said detected inflation was a “clear and present danger” for many countries.

The bearish outlook added to price pressure from the dollar trading at two-year highs. A stronger greenback makes dollar-denominated commodities more expensive for holders of other currencies, which can reduce demand. [USD/]

Chicago Federal Reserve Bank President Charles Evans on Tuesday said the Fed could raise its policy target range to 2.25% to 2.5% by year-end, but if inflation remains high , will likely need to raise interest rates further.

Meanwhile, the President of the Federal Reserve Bank of St. Louis James Bullard said on Monday that US inflation is “too high” as he repeated his case for raising interest rates to 3.5% by year-end to slow this 40-year-old-read inflation high.

Phil Flynn, analyst at Price Futures Group, said the IMF’s lower growth forecast, coupled with the Strategic Petroleum Reserve’s report that emergency stocks fell by 4.7 million barrels on Monday. , is “causing some anxiety,” said Phil Flynn, an analyst at Price Futures Group.

Concerns about demand growth were in focus after a preliminary Reuters poll on Monday showed {{8849 | US crude oil inventories are likely to have increased last week.

China’s economy slowed in March, worsening an outlook already weakened by COVID-19 restrictions and the conflict in Ukraine.

Fuel demand in China, the world’s biggest oil importer, could start to pick up as manufacturing plants prepare to reopen in Shanghai.

Tuesday’s price drop followed a gain of more than 1% on Monday, when oil prices hit their highest levels since March 28 due to disruptions in oil supplies in Libya. The Libyan National Oil Corporation (NOC) on Monday warned of “a wave of painful shutdowns” and declared force majeure on some output and exports as forces in the east expanded. blockade the area because of political deadlock.

The NOC on Tuesday declared force majeure at the Brega oil port.

UK Prime Minister Boris Johnson in a phone call with Western leaders on Tuesday stressed the need to increase pressure on Russia with sanctions and diplomatic isolation.

The possibility of the European Union banning Russian oil continues to keep the market competitive. French Finance Minister Bruno Le Maire on Tuesday said an EU-level embargo was being implemented.



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