Oil closes sharply lower, pressured by recession fears | Economy

Oil futures closed sharply lower on Friday (17), extending the week’s heavy losses and interrupting a streak of seven consecutive weeks of weekly losses, amid fears about the global economic slowdown.

The Brent oil contract, the global benchmark for the commodity, for August closed down 5.58%, at US$ 113.12 a barrel, while the US WTI oil contract for July fell 6.82%, at US$ 109.56 per barrel. For the week, Brent accumulated losses of 7.28%, while WTI dropped 9.20% in the period.

Oil prices have come under pressure from fears over a slowing US economy and fears of a recession in the world’s largest economy, reducing demand for energy. This week, the Federal Reserve’s decision to raise its benchmark interest rate target by 0.75 percentage point — more than it had signaled in May — heightened fears that monetary tightening in the US will further harm the US economy, which is already slowing.

Today’s data schedule brought yet another negative sign: US manufacturing production fell 0.1% in May, defying financial market expectations for a 0.3% rise. Industrial production, as a whole, managed to remain in positive territory, up 0.2% in the period, but also fell short of investors’ expectations.

On the supply side, the May report indicated that output from the oil and gas sector rose 6.2%, also fueling energy supply prospects and putting pressure on oil prices. Investors are also paying attention to the visit of US President Joe Biden to Saudi Arabia, amid speculation that the trip indicates a possible agreement to expand the offer of the Organization of Petroleum Exporting Countries (OPEC), which is unofficially led by the Saudis.

Brazil and the United States raise interest rates against inflation

Brazil and the United States raise interest rates against inflation

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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