Crude oil prices fall on global economic growth fears

Crude oil prices fall on global economic growth fears

oil prices They fell on Tuesday after rising sharply in the previous session, as concerns about global economic growth followed Saudi Arabia’s promise to deepen its output cuts.

promise of crude oil They fell 42 cents, or 0.6%, to $76.29 a barrel. US crude West Texas Intermediate It fell 41 cents, or 0.6%, to $71.74 a barrel.

He Brent rose to $2.60 a barrel on Monday and WTI up to $3.30 thereafter Saudi ArabThe world’s biggest exporter said over the weekend that it would cut output by 1 million barrels per day (bpd) to 9 million bpd in July.

However, weak demand, increased supply from non-member countries OPECA possible recession in the United States and Europe and slowing growth in China make it unlikely that Saudi production cuts will lead to a “sustainable rise in prices” to $80-90, according to a note published Tuesday by Citi analysts.

The US services sector barely grew in May as new orders slowed, and market participants are waiting to see whether May United States Federal Reserve Will raise or maintain interest rates in June. Higher interest rates can reduce the demand for energy.

German industrial orders fell unexpectedly in April.

The US Energy Information Administration on Tuesday raised its 2023 global oil demand growth forecast by 30,000 barrels per day to 1.59 million bpd.

He world Bank Reuters on Tuesday extended its forecast for global growth to 2023 as the United States and other major economies proved more resilient than expected, but said higher interest rates would pose a bigger hurdle next year than expected.







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