Oil recovers as supply concerns prevail
Crude oil prices recovered some of their losses in a volatile trading session on Wednesday after falling more than 5% earlier.
The international benchmark, Brent crude, rose about 1% to around $108 a barrel on supply concerns after data showed a drop in oil inventories in the US and concerns about supply loss from Russia and Libya. spurred a recovery from the previous session’s sharp drop. .
U.S. crude oil futures rose 75 cents to slightly more than $103 a barrel.
But those contracts fell more than 5% on Tuesday after the International Monetary Fund sharply cut its global growth outlook, citing risks from the Russia-Ukraine war.
“The global economic outlook has been severely impaired, largely due to Russia’s invasion of Ukraine. The immediate priority is ending the war,” the International Monetary Fund said in a blog post on its bullish forecast. its latest world economic outlook.
“Compared to our January forecast, we have revised down our global growth forecast to 3.6% for both 2022 and 2023. This reflects the direct impact of the war on Ukraine and its orders. sanctions on Russia, with both countries expected to experience sharp contractions,” the IMF added.
China’s COVID-0 approach and tight lockdown measures have dampened the demand outlook and weighed on prices.
However, Reuters reported that US crude stockpiles fell 4.5 million barrels last week, according to market sources citing data from the American Petroleum Institute on Tuesday.
And more outages have added to supply worries. In fact, OPEC member Libya was forced to close many oil facilities because of political protests.
