{"id":160378,"date":"2022-07-14T22:23:02","date_gmt":"2022-07-14T22:23:02","guid":{"rendered":"https:\/\/precoinnews.com\/?p=160378"},"modified":"2022-07-14T22:23:02","modified_gmt":"2022-07-14T22:23:02","slug":"oil-futures-recover-after-sharp-plunge-but-end-on-weak-note","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/oil-futures-recover-after-sharp-plunge-but-end-on-weak-note\/","title":{"rendered":"Oil Futures Recover After Sharp Plunge But End On Weak Note"},"content":{"rendered":"
Crude oil prices drifted lower on Thursday as concerns about the outlook for energy demand resurfaced amid fears of a possible recession due to rising interest rates.<\/p>\n
The Organization of the Petroleum Exporting Countries (OPEC) said it expects global oil demand to rise at a slower pace than 2022 in 2023 due to high prices and risks such as inflation.<\/p>\n
Fresh Covid-related curbs in several parts of China and the dollar’s sharp uptick also weighed on oil prices.<\/p>\n
Oil prices had moved higher on Wednesday despite data showing a jump in crude inventories in the U.S. in the week ended July 8th.<\/p>\n
West Texas Intermediate Crude oil futures for August ended lower by $0.52 or about 0.5% at $95.78 a barrel today. WTI futures dropped to a low of $90.56 a barrel in the session before recovering lost ground.<\/p>\n
Brent crude futures dropped to a low of $94.52 a barrel today before recovering ground. The contract was last seen hovering around $99.70 a barrel.<\/p>\n
After the Bank of Canada hiked interest rates by 100 basis points on Wednesday, the Monetary Authority of Singapore and the Bangko Sentral ng Pilipinas surprised markets<\/span> by tightening monetary policy in off cycle moves.<\/p>\n It is widely expected that the Federal Reserve will hike interest rates by 75 basis points or 100 basis points at the upcoming meeting later this month.<\/p>\n Data from the Energy Information Administration (EIA) on Wednesday showed crude inventories rose by 3.254 million barrels last week, against expectations for a drop of 154,000 barrels.<\/p>\n Gasoline stockpiles rose by 5.825 million barrels last week, while forecasts were for a drop of 357,000 barrels. Meanwhile, distillate stockpiles increased 2.668 million barrels, against forecasts for a rise of 1.591 million barrels. <\/p>\n