Oil prices slips amid interest rate hike and global economic outlook

24 Apr 2023 , 09:19 AM

On Monday, Oil priced decreased due to various reasons including concerns on rising interest rates, the global economy and demand for fuel outweighed support from the prospect of tighter supplies on OPEC+ supply cuts.

Brent crude falls 48 cents by 0.6% to $81.18 a barrel by 0045 GMT while U.S. West Texas Intermediate crude also down 48 cents by 0.6% lower at $77.39 a barrel.

In view to tackle high inflation, central banks from US, Britain and Europe, all are expecting to raise interest rates when they meet in the first week of May.

China’s economic recovery post Covid is rough has also obscure its oil demand outlook. However, Chinese customs data showed on Friday that the world’s top crude importer brought in record volumes in March. China’s imports from Russia and Saudi Arabia topped 2 million barrels per day (bpd) each.

The top refiners of Asia, China and India have weakened on record production, curbs the region’s appetite for Middle East supplies loading in June.