WTI crude futures fell more than 2%, falling off $89 today. amid concerns that The acceleration of interest rate hikes by the Federal Reserve (Fed) and central banks around the world. will cause the economy to face a recession and affect the demand for oil
Oil prices were also pressured by the dollar’s appreciation. This will reduce the attractiveness of the contract. by making oil contracts more expensive for holders of other currencies.
As of 5:58 p.m. Thai time, the West Texas Intermediate (WTI) crude oil contract was delivered in November. It traded on the NYMEX minus $2.19, or 2.40 percent, to $88.94/barrel.
Jamie Dimon, chief executive of JPMorgan Chase, said the US and global economies were likely to enter a recession in the middle of next year. It has been affected by rising inflation, rising interest rates. and the Russian military invasion of Ukraine
The International Monetary Fund (IMF) will release its World Economic Outlook report today, with it expected to cut its forecasts for global growth in 2023 amid concerns about inflation, spreading. Covid-19 outbreak, war between Russia and Ukraine and the impact of global warming on the economy on every continent
Earlier in the release of the global economic outlook report in July. The IMF has lowered its global economic growth forecast for 2022 and 2023 to 3.2 percent and 2.9 percent, respectively.
Ms Kristalina Georgiava, IMF Director and World Bank President David Malpass. warned that The global economy is more vulnerable to a recession next year. While inflation continues to affect the economy After Russia deployed troops to attack Ukraine in February.
Ms Georgiava said the IMF would emphasize at this week’s meeting that central banks will continue their efforts to curb inflation. Although such actions will affect the economy.
“If they act insufficiently We will face problems from uncontrollable inflation. This will cause the central bank to raise interest rates even more. and will have a heavy impact on economic growth.”
Ms Georgiawa said.
In addition, investors are concerned that Chinese economic slowdown which is the world’s largest oil importer And being the world’s second largest oil consumer after the United States will affect oil demand in the market.
China’s services sector contracted in September for the first time in four months, hit by strict measures to curb the spread of COVID-19, hurting business demand and confidence.
Investors will keep an eye on the American Petroleum Institute (API)’s release of US crude inventories tomorrow. The US government’s Energy Information Administration (EIA) will be released on Thursday.
By InfoQuest News Agency (11 Oct. 65)
Tags: WTI, Kristalina Georgiava, crude oil, oil price, crude oil contract, Jamie Diamond, David Malpass