London: Oil prices hit demand on Thursday as China, the world’s second-largest economy and largest importer of fuel, continued to implement stringent COVID-19-related restrictions amid a rising number of infections in the country. continued to fall due to concerns about
Meanwhile, global stock markets fell Thursday on fears of rampant inflation and a widening recession. Stocks in Frankfurt, London and Paris each fell about 1.5%. Losses continued across Asia as investors braced for further rate hikes and tried to quell runaway inflation, which could derail economic activity.
At 12:32 pm Kuwait time on Thursday, Brent was trading down 1.79% at $93.93 a barrel. The West Texas Intermediate, a benchmark that tracks US crude, fell 1.70% to $88.03 a barrel.
Traders will keep a close eye on next week’s OPEC+ meeting after Saudi Energy Minister Prince Abdulaziz bin Salman said last week that production would be cut if needed to combat volatility in oil prices. Weak demand is likely to face tighter supplies, which means oil prices are likely to rise to new levels between $90 and $100 in the coming days, he said. .
Fears of a recession are also growing around the world amid rising inflation, the pandemic and the conflict in Ukraine. The International Monetary Fund cut its forecast for global economic growth this year to 3.2% from his 3.6% in April due to the war in Ukraine and a slowdown in China.
The OPEC+ alliance of 23 producers, including Saudi Arabia and Russia, will meet on Sept. 5 to decide future production policies. Oil prices have been very volatile this year. Brent crude has fallen from his 14-year high near $140 a barrel in March after Moscow’s invasion of Ukraine began, and he’s up more than 20% since the beginning of the year. UK on crude oil imports from Russia.
European stocks also fell on Wednesday as record-high eurozone inflation fueled concerns that borrowing costs could rise further. The Fed is expected to release its latest monetary policy decision next Thursday.
“The market has not been able to stop the recent losing streak, and investors are still having a tough time,” said Richard Hunter, an analyst at Interactive Investor. “At the center of our concerns now are fears of a US recession and a beleaguered China. do not have”
Asian stocks fell further on Thursday as traders continued to digest reduced factory activity in the big economy China. Shanghai also fell on news that the Chinese city of Chengdu would effectively lock down about 16 million people to contain the COVID-19 outbreak, possibly another blow to the stagnating economy. there is. Wall Street fell Wednesday as Treasury yields, a key indicator of future interest rates, rose further.
Another senior Fed official suggested the Fed was determined to keep raising borrowing costs, echoing recent comments by U.S. Central Bank Governor Jerome Powell that the fight against inflation cannot be stopped. US interest rates are currently between 2.25% and 2.5%, raising hopes of a massive 75 basis points hike at the third consecutive meeting later this month. Friday’s government employment report will be watched closely by traders for ideas on the bank’s next move. The prospect of further US rate hikes continued to push the dollar higher, and for the first time since 1998 he reached 140 yen. The dollar is also at its strongest level against the pound since the height of the 2020 pandemic, with pound buying down. From $1.16. – AFP