Crude oil declined on recession fears and falling demand. In order to avoid a weekly decrease, oil prices dipped on Friday, deepening losses from the two days.
Crude oil unable to find much demand amid recession concerns
Worse U.S. economic statistics and an increase in gasoline stocks stoked worries about recession and slowing global demand for crude. Oil prices dropped on Friday, continuing losses from the two prior days and aiming for a weeklong decrease.
At 0101 GMT, June Brent futures were off 14 cents, or 0.2%, at $80.96 per barrel. The price of a barrel of June delivery West Texas Intermediate oil (WTI) dropped 12 cents, or 0.2%, to $77.25. On Thursday, amid worries about a potential recession, both indexes fell over 2 percent to their lowest level since late March. And they were expected to decline by around 6% this week.
Crude oil market sentiment bearish looks to the summer driving season ahead
The market mood remains bearish following the weak U.S. economic report, along with expectations of interest rate increases. Stoking fears over a downturn that might affect oil demand. Stated Hiroyuki Kikukawa, president of NS Trading, a division of Nissan (OTC: NSANY) Securities.
For the upcoming week, WTI is anticipated to trade in the $75–$80 region as investors try to predict if U.S. demand for gasoline will rise. As we approach the summer traveling period and if China’s oil demand will actually increase in the latter half of this year.
Weekly unemployment claims increased last week, according to economic statistics. Indicating that the US job market may be beginning to weaken as the delayed impact of the Fed‘s periodic interest rate rises takes hold. Raising fears about a downturn in gasoline consumption.
As refinery runs and exports increased last week and gasoline stockpiles surprisingly increased due to weak demand. The U.S. crude oil inventories decreased more than expected, according to EIA data released on Wednesday.
As domestic demand increases and the need to stimulate its economy via oil products lessens. China may lower export restrictions for refined oil products in another shipment for 2023, according to a Reuters study. Despite Moscow’s promise to reduce output. Oil shipping from Russia’s western ports is anticipated to increase in April to the highest level since 2019. Exceeding 2.4 million barrels per day.
