Oil Prices Fall on Renewed Economic Concerns in US and China

Oil prices fell yesterday, on track to post a third consecutive weekly loss, as the market balanced concerns about supplies with renewed economic concerns in the United States and China.

Brent crude futures fell 59 cents, or 0.8%, to $74.39 a barrel during trading, and US crude futures fell 55 cents, or 0.8%, to $70.32, and the two crudes are on their way to incur a weekly loss of about 1%.

The dollar held on to its modest gains against the euro and is on its way to recording its biggest weekly increase since February, as uncertainty over the debt ceiling and monetary policy in the United States led investors to turn to safe-haven assets.

And increased fears of entering the United States, the largest oil consumer in the world, in a state of recession after the postponement of the decision to raise the ceiling of the debt of the US government and the growing concern about the failure of another regional bank.

And Michelle Bowman, a member of the US Federal Reserve, said yesterday that the bank may have to raise interest rates again if inflation remains high, and added that the data issued this month did not convince her that price pressures are receding.

Meanwhile, Chinese consumer prices rose in April at a slower pace than in March, which missed expectations, while lower producer prices revived doubts that the Chinese economy’s post-pandemic recovery would drive oil demand growth.

The market drew support from expectations of a supply shortage in the second half of the year, even despite Iraqi Oil Minister Hayan Abdul Ghani’s statements to Reuters that he did not expect the “OPEC +” coalition to decide on a new production cut at its next meeting in Vienna on the third and fourth of June.