June 5, 2023

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Falling oil prices due to high inflation in the US and closures in China |  Latest news

Falling oil prices due to high inflation in the US and closures in China | Latest news

Oil prices fell on Friday after US consumer prices rose more than expected and China imposed new corona virus locking measures.

Brent crude was down 1% at $ 121.88 a barrel, while West Texas crude was down 0.8% at $ 120.34 a barrel.

Oil prices also fell, along with Wall Street stocks, following news of a surge in U.S. consumer prices in May.

Petrol prices hit record highs and food prices soared in the United States, leading to the biggest annual increase in nearly 40 years, raising expectations that the central bank will tighten monetary policy even more drastically.

Two crude oil recorded weekly gains of 1.9% for Brent and 1.5% for U.S. crude.

Oil prices have already gained support in Europe and Africa amid fears that supply could be disrupted.

On the other hand, Shanghai and Beijing were again on alert due to the corona on Thursday, and imposed new restrictions on the closure of Shanghai areas and the city announced a round of mass testing for millions of residents.

The Norwegian Oil and Gas Association said oil production in Norway would fall if workers went on strike on Sunday.

In terms of U.S. supplies, the number of oil mines operating in the United States, which is an indicator of future supply, rose six times this week to 580 rigs, the highest level since March 2020.

The chances of reaching a nuclear deal with Iran and the lifting of US sanctions on its oil sector also appeared to be declining, which supported the rise in oil prices.

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