Crude oil prices decline in early trade

21 Apr 2023 , 08:23 AM

As softer U.S. economic statistics and an increase in petrol inventories stoked worries about a recession and slowing global oil demand, oil prices dropped on Friday, extending losses from the two prior days .

June Brent futures were down 14 cents, or 0.2%, at $80.96 per barrel. The price of a barrel of June delivery West Texas Intermediate crude (WTI) dropped 12 cents, or 0.2%, to $77.25.

On Thursday, amid worries about a potential recession, both benchmarks fell more than 2% to their lowest level since late March, and they were expected to decline by around 6% this week.

Weekly unemployment claims increased last week, according to economic statistics, suggesting that the U.S. labour market may be beginning to weaken as the delayed impact of the Federal Reserve’s periodic interest rate hikes takes hold, raising fears about a slowdown in fuel demand.

According to Energy Information Administration statistics released on Wednesday, U.S. crude oil inventories decreased more than expected last week as refinery runs and exports increased, while petrol stockpiles unexpectedly increased due to weak demand.

As domestic demand increases and the need to stimulate its economy through oil products lessens, China may lower export restrictions for refined oil products in a second batch for 2023, according to a Reuters study.

Despite Moscow’s commitment to reduce output, oil loading from Russia’s western ports is predicted to increase in April to the highest level since 2019, exceeding 2.4 million barrels per day, according to trading and shipping sources.

For feedback and suggestions, write to us at [e-mail]