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Oil prices continued to decline on Friday, with WTI falling below $69 and Brent below $73.50. Concerns of a global economic slowdown are weighing on oil prices, particularly after Jerome Powell suggested more interest rate hikes were coming. Despite concerns of an economic slowdown, fuel demand in the U.S. is on the rise while some analysts remain optimistic about Chinese demand growth. Crude oil prices extended a slide that began earlier this week as fears of a global slowdown prevailed oversupply constraint considerations. Remarks from the Federal Reserve’s chairman Jerome Powell added to pressure on benchmarks. Powell said this week that he sees at least two more rate hikes by the end of the year. The statement suggests current efforts to rein in inflation have not done the job, which in turn suggests that the situation is graver than many believed originally, including Powell himself. Bullish factors remain in the game, however, likely limiting oil’s losses. “The oil market remains torn between supportive fundamentals and an uncertain macro outlook,” Warren Patterson, head of commodities strategy at ING, told Bloomberg. Patterson added that further rate hikes will weigh on prices in the immediate term but over the second half of […]
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