Crude oil futures closed more than 5% lower on Tuesday after the International Monetary Fund (IMF) lowered its global growth forecast for this year and next. This has led investors to worry that the slowdown in the economy could hurt demand for oil in the market.
- WTI crude futures fell $5.65, or 5.2 percent, at $102.56 a barrel.
- BRENT crude futures were down $5.91, or 5.2%, at $107.25 a barrel.
Crude oil futures fell after the IMF lowered its global growth forecast for 2022 and 2023 and said the Russian military attack on Ukraine would have a broader impact on the global economy. And this is also a pressure factor for the price. Moreover, it poses a major challenge for policy implementation.
The IMF’s World Economic Outlook, released yesterday, forecasts that the global economy will grow by 3.6% in both 2022 and 2023, down from its January forecast of 4.4% in 2022 and 3.8% in 2023.
Investors are waiting for the weekly report on U.S. crude oil inventories, which is to be published today by the EIA. Analysts at S&P Global Commodity Insights expect U.S. crude oil inventories to have increased by 2.2 million barrels in the week ended April 15. Gasoline inventories are expected to fall by 1.2 million barrels and refinery inventories by about 1 million barrels.
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Wednesday, April 20, 2022