Oil prices dip on demand worries
Saudi Arabia supplies more than half of Bangladesh’s crude imports, but Dhaka has been hit hard by a global surge in energy and food prices.—Reuters photo
Oil prices fell on Friday, headed for a weekly decline as traders worried interest rate hikes could sap demand despite signs of tighter supplies including lower US crude stocks.
In a second straight day of losses, Brent crude slipped 53 cents, or 0.7%, to $73.61 a barrel by 1527 GMT. US West Texas Intermediate (WTI) crude was down 63 cents, or 1%, at $68.86. On Thursday, Brent dropped about $3 a barrel after the Bank of England (BoE) raised interest rates by a bigger-than-expected half a percentage point. Central banks in Norway and Switzerland also hiked rates.
More US interest rate hikes also seemed likelier. San Francisco Federal Reserve Bank President Mary Daly said two more rate hikes this year was a “very reasonable” projection.
“There seems to be a growing ‘risk back off’ type of trade now in crude, triggered by the interest rate rises in the EU and disappointing stimulus numbers out of China,” said Dennis Kissler, SVP of trading at BOK Financial.
Published in The Express Tribune, June 24th, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.