Oil Prices are Falling as The International Monetary Fund (IMF) Lowers its Growth Forecasts.
London, Tuesday, 19 April 2022
WTI crude futures extended their losses on Tuesday, sliding more than 5% to below $103 a barrel, snapping a four-day winning streak as traders digest concerns about falling demand despite tight supply.
Due to the conflict in Ukraine, the IMF decreased its growth forecasts for this year and 2023 and raised inflation predictions.
Investors are also attempting to gauge the impact of Chinese lockdowns on global fuel demand, despite Chinese authorities claiming that the pandemic's influence will be "rapidly reversed" as manufacturing plants in Shanghai prepare to reopen.
At the same time, hawkish statements from Fed officials heightened the chance of a speedier rate hike, driving the currency higher and putting downward pressure on oil prices.
Libya said it couldn't transport oil from the country's largest oil field, Sharara, after shutting down the El Feel oil production due to political unrest.
According to Reuters, OPEC+ produced 1.45 million barrels per day less than its expectations in March, as Russian output began to decrease.
(Written and edited by: The Decision Maker)