Oil prices fell 4% on Wednesday, extending the slide from the previous session, after the Federal Reserve (fed) raised interest rates by 25 basis points and investors feared for the economy.
crude oil futures Brent The contract fell $2.99, or 3.97%, to $72.33 a barrel, its lowest close since December 2021. The contract hit a session low of $71.70, a bottom since March 20.
Meanwhile, the West Texas Intermediate (WTI) fell $3.06, or 4.27%, to $68.60 after hitting a bottom of $67.95, its lowest level since March 24.
On Tuesday, both benchmarks posted their biggest one-day percentage drops since early January.
The fed raised interest rates a quarter of a percentage point and signaled it may pause to give time to assess the consequences of the recent bank failures, wait for the resolution of a political standoff over the US debt limit, and watch the course of inflation.
The energy prices they are also under pressure after data from China over the weekend showed manufacturing activity fell unexpectedly in April. China is the world’s largest consumer of energy and the main buyer of crude oil.
The reopening of the Chinese economy after the pandemic will be critical for Asia, according to the International Monetary Fund, which raised its economic forecasts for the region on Tuesday. However, he warned of the risks of persistent inflation and volatility in world markets, caused by problems in the Western banking sector.
Meanwhile, inventories of crude oil and distillates in the United States fell, while gasoline reserves increased, the Energy Information Administration (EIA) reported on Wednesday.
kg
