The Magazine for Asian Investors
Crude oil futures closed lower on Monday (April 25) as investors worried that the Shanghai lockdown would last long and the U.S. Federal Reserve (Fed) accelerated interest rate hikes. These will affect economic activity and oil demand.
- WTI crude futures fell $3.53, or 3.5%, at $98.54 a barrel.
- BRENT crude futures fell $4.33, or 4.1%, at $102.32 a barrel.
WTI oil futures fell from the 100 US dollar mark on concerns about a slowdown in the economy and oil demand. The world looks to China, the world’s largest importer of oil, which continues to struggle with the pandemic. This continues to lead to lockdown measures in major Chinese cities as the Chinese government continues to pursue a 0 COVID policy.
The lockdown of the Chinese financial metropolis Shanghai enters its fourth week. There is no sign of improvement so far. China has also ordered the lockdown of dozens of residential areas in the city of Chaoyang.
The oil market was also pressured by the Fed’s signal to raise interest rates to curb inflation.
Moreover, the International Monetary Fund (IMF) has lowered its forecasts for global economic growth in 2022 and 2023 due to the war in Ukraine.
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Tuesday, April 26, 2022