Crude Extends Decline Amid Growing Recession Fears, MCX Futures Slump 2%

25 Jul 2022 , 12:47 PM

Crude oil prices are falling for the fourth consecutive session on Monday amid worries of aggressive interest rate hikes by the Federal Reserve that could reduce demand for fuel. U.S. Federal Reserve concludes a two-day meeting on Wednesday, but the extent of hikes remains uncertain in the face of worsening data. Deteriorating data from across the globe reinforce the possibility of a recession coming soon. Business activity in the United States, the worlds largest economy, contracted for the first time in nearly two years this month, activity in the euro zone retreated for the first time in over a year, and growth in Britain was at a 17-month low, purchasing managers surveys said on Friday. Global economic slowdown looks imminent as central banks aggressively reverse ultra-loose monetary policy adopted during the pandemic to support growth. WTI crude oil futures are trading down nearly 1% at $93.81 per barrel. MCX Crude oil futures saw a sharp gap down opening and currently trades down 2% at Rs 7505 per barrel. Powered by Commodity Insights