Oil prices fall on deteriorating growth and inflation outlook
Oil prices fell slightly on Friday – a two-week low – as worries about global economic growth and uncertainty weighed on markets following various interest rate hikes around the world this week.
Brent crude futures fell 83 cents, or 0.8%, to $118.98 a barrel, while US West Texas Intermediate (WTI) crude futures fell to 116.79 dollars a barrel, down 80 cents, or 0.7%.
If the losses continue throughout the day, Brent futures would post their first weekly decline in five weeks, while U.S. crude futures would see their first decline in eight weeks.
While the US Federal Reserve is raising interest rates by 75 basis points is one reason, the deteriorating growth outlook, inflation is another reason for the fall in oil prices.
Supply is rising and US production is at its highest since April 2020. But even though the US announced new sanctions on Iranian oil, it hasn’t brought markets back to $120 a barrel. It therefore continues to be nearly $5 a barrel lower than it was on Monday, June 13.
Pressure continues in the metals space where copper is trading at a 4 week low, platinum is trading at a 6 week low and steel prices also continue to trade at a low of several months. Coal also hit a 5-week low while gold prices are trading at a 1-month high.
Watch the accompanying video from CNBC-TV18’s Manisha Gupta for more details.
(with contribution from Reuters)