Oil prices fell on Thursday in international markets as further interest rate hikes by central banks will slow economic growth, reducing demand for ‘black gold’.
The price of a barrel on the London market fell by about 70 cents compared to the previous close, to $82.0. A barrel was traded on the American market at a price about 80 cents lower, at $76.49.
Prices on both markets fell due to a stronger dollar, which can weaken demand for oil as it makes it more expensive for those using other currencies.
The President of the U.S. Federal Reserve Jerome Powell stated on Wednesday that the U.S. central bank will further raise interest rates next year, although the economy is threatened by recession.
– The price of oil is under pressure today as the Fed’s monetary policy guidelines have increased concerns about economic growth, strengthened the U.S. dollar, and pressured commodity prices – said Tina Teng from CMC Markets.
– Chinese economic data for November was “well below expectations, further darkening demand outlooks – added Teng.
This morning, it was revealed that the world’s second-largest economy has further lost momentum as data shows that factory production growth has slowed, and retail sales continued to decline. China is the world’s largest oil importer.
