Global oil prices experienced a decline in trading on Thursday due to increasing concerns among investors about the demand for crude from China, the second largest economy in the world. This decline was triggered by the confirmation from Jerome Powell, the Chairman of the US Federal Reserve, regarding the possibility of raising interest rates again in 2023. As a result, both gold and the dollar also experienced a decline.
By 09:30 am GMT, Brent oil fell by 0.4% to reach $76.64 per barrel, while US crude fell by 0.6% to reach $72.08 per barrel. The fears among investors were further fueled by Powell’s testimony before Congress on Wednesday, where he emphasized the central bank’s goal of reining in inflation and raising interest rates by 25 basis points by the end of the year.
The oil markets are currently dominated by caution, especially with the anticipation of the release of official data on inventories from the US Energy Information Administration later in the day. Additionally, the global gold price declined by 0.26%, equivalent to $5, bringing the price of one ounce to $1940.1. The US dollar index also experienced a decline of 0.04%, reaching 102.04 points during the same trading hour.
The increase in interest rates leads to higher borrowing costs for consumers, which could potentially slow down economic growth and reduce the demand for crude. Furthermore, higher interest rates also support the dollar, which in turn affects the demand for oil as it becomes more expensive for buyers holding other currencies.
In other news, there are opportunities for trading and investing in Gulf stock exchanges. For more information, readers can visit the provided link. Additionally, the latest stock market and economic news can be followed on the Telegram channel mentioned in the article.
Lastly, the article includes nominations for video graphics and infographics. The video graphic highlights the categories that are exempt from corporate tax in the UAE, while the infographic presents the World Bank’s expectations for the growth of Arab countries’ economies in 2023.
What factors contribute to the decline in global oil prices, including the concerns about the demand for crude from China and the impact of higher interest rates
Global oil prices experienced a decline in trading on Thursday due to increasing concerns among investors about the demand for crude from China, the second largest economy in the world. This decline was triggered by the confirmation from Jerome Powell, the Chairman of the US Federal Reserve, regarding the possibility of raising interest rates again in 2023. As a result, both gold and the dollar also experienced a decline.
By 09:30 am GMT, Brent oil fell by 0.4% to reach $76.64 per barrel, while US crude fell by 0.6% to reach $72.08 per barrel. The fears among investors were further fueled by Powell’s testimony before Congress on Wednesday, where he emphasized the central bank’s goal of reining in inflation and raising interest rates by 25 basis points by the end of the year.
The oil markets are currently dominated by caution, especially with the anticipation of the release of official data on inventories from the US Energy Information Administration later in the day. Additionally, the global gold price declined by 0.26%, equivalent to $5, bringing the price of one ounce to $1940.1. The US dollar index also experienced a decline of 0.04%, reaching 102.04 points during the same trading hour.
The increase in interest rates leads to higher borrowing costs for consumers, which could potentially slow down economic growth and reduce the demand for crude. Furthermore, higher interest rates also support the dollar, which in turn affects the demand for oil as it becomes more expensive for buyers holding other currencies.
In other news, there are opportunities for trading and investing in Gulf stock exchanges. For more information, readers can visit the provided link. Additionally, the latest stock market and economic news can be followed on the Telegram channel mentioned in the article.
Lastly, the article includes nominations for video graphics and infographics. The video graphic highlights the categories that are exempt from corporate tax in the UAE, while the infographic presents the World Bank’s expectations for the growth of Arab countries’ economies in 2023.
Global oil prices have taken a hit due to two key factors: concerns about Chinese demand and the potential interest rate hike in 2023. These issues have created uncertainty and led to a decline in oil prices.
The global oil market faces a double blow as concerns over weakened Chinese demand and the potential interest rate hike in 2023 send prices tumbling. These developments raise questions about the overall stability of the industry and call for a cautious approach by stakeholders.