November 27, 2022

Dubai Week

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Records weekly losses due to concerns about oil fall and growth

Records weekly losses due to concerns about oil fall and growth

Brent crude was down $ 1.68, or 1.6 percent, at $ 106.65 a barrel. US West Texas Intermediate crude was down $ 1.72, or 1.7 percent, at $ 102.07 a barrel.

The International Monetary Fund downgraded its forecast for global economic growth this week, while the Federal Reserve chief said:US Federal ReserveJerome Powell said on Thursday that a half-point increase in interest rates would be an option at the bank’s next meeting in May.

“At this point, concerns about China’s growth and the central bank’s monetary austerity restricting US growth seem to be offset by concerns that Europe will soon expand its scope of import sanctions,” said Geoffrey Haley, an OANDA analyst. Russian energy“.

Expectations of demand from continued China, The world’s largest oil importer, is putting pressure on the market. Shanghai has announced new anti-Govt-19 measures, including a daily test from Friday, to control the latest outbreak of the disease in the country.

Brent prices hit $ 139 a barrel last month, the highest level since 2008, but both measures recorded weekly losses of five percent each.

The number of oil wells, an initial indicator of future production, rose to 549 in the week ended April 22, the highest level since April 2020, Baker Hughes Energy Services said in a statement on Friday.

The current support for prices comes from a shortage of goods in Libya after a production disruption and a drop of 550,000 barrels per day, and supply could fall further if the EU imposes a ban. Russian oil.

The Netherlands said on Friday that it plans to suspend the use of Russian fossil fuels by the end of this year.

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Morgan Stanley raised the price of Brent crude oil by $ 10 a barrel in the third quarter to $ 130 a barrel, saying it would be a “big deficit” this year as supplies from Russia and Iran fell. Impact of low demand in short term.