Oil prices in decline due to global demand uncertainty
Published on: Monday, April 24, 2023
By: Bernama
ANKARA: Oil prices started the week on the decline due to demand fears fuelled by weak global economic data and the possibility of more interest rate hikes, reported Anadolu.
International benchmark Brent crude traded at US$80.44 per barrel at 09.35 am local time (0635 GMT), a 1.25 per cenr decrease from the closing price of US$81.46 a barrel in the previous trading session.
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Meanwhile, the American benchmark West Texas Intermediate (WTI) traded at US$76.83 per barrel, down 1.34 per cent from the previous session's close of US$77.87 per barrel.
Rising interest rates, concerns over the global economy, and a lower fuel demand outlook were instrumental in the decline in prices.
Oil prices came under pressure on expectations that central banks in the US, UK, and Europe would raise interest rates in the first week of May to combat high inflation.
Loretta Mester, the head of the Cleveland Federal Reserve Bank, said last week that the US central bank still has more interest rate increases ahead of it, placing pressure on prices.
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Weak US economic data increased price pressure by raising recessionary concerns and slowing global oil demand.
Both benchmarks fell more than 5 per cent last week on weak economic concerns and as gasoline demand fell from a year ago in the US, the world's largest oil consumer.
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