Scattered Clouds
clouds

18 April 2024

Amman

Thursday

71.6 F

22°

Home / Business

Oil prices decline amid fears of a global recession

12-10-2022 11:04 AM


Ammon News - Oil prices fell for a third straight session on Wednesday as investors fretted about a hit to fuel demand from growing risks of a global recession and tightening COVID-19 curbs in China.

Brent crude futures fell 51 cents, or 0.5%, to $93.78 a barrel by 0033 GMT. U.S. West Texas Intermediate crude was at $88.66 a barrel, down 69 cents, or 0.8%. Both benchmarks fell 2% in the previous session.

The International Monetary Fund on Tuesday cut its global growth forecast for 2023 and warned of increasing risk of a global recession.

But the IMF also urged central banks to keep up their fight against inflation even as investors worry policymakers could trigger a sharp economic downturn by raising borrowing costs too fast and too high.

Separately, Fed Bank of Cleveland President Loretta Mester said the U.S. Federal Reserve will need to press forward with tightening monetary policy as it has yet to control inflation.

The dollar gained broadly overnight, after a top Bank of England official told pension fund managers to finish rebalancing their positions by Friday, when the British central bank is due to end its bond-buying program.

A stronger dollar makes dollar-denominated commodities more expensive for holders of other currencies and tends to weigh on oil and other risk assets.

Traders are cautiously waiting on the release of U.S. CPI data on Thursday, said CMC Markets analyst Tina Teng.

"Hotter-than-expected data may again tip investors sentiment over the edge, which will intensify the current recession fears, pressing on oil prices further," Teng said.
(Reuters)




No comments

Notice
All comments are reviewed and posted only if approved.
Ammon News reserves the right to delete any comment at any time, and for any reason, and will not publish any comment containing offense or deviating from the subject at hand, or to include the names of any personalities or to stir up sectarian, sectarian or racial strife, hoping to adhere to a high level of the comments as they express The extent of the progress and culture of Ammon News' visitors, noting that the comments are expressed only by the owners.
name : *
email
show email
comment : *
Verification code : Refresh
write code :