Business News Asia
Oil prices fell Monday, reversing a previous rise, as concerns about slowing global economic growth and fuel demand outweighed worries about tight supplies.
- Brent crude futures fell 3 cents at $113.09 a barrel.
- WTI crude futures were down 14 cents, or 0.1%, at $109.42 a barrel.
Tina Teng, market analyst at CMC, said the drop in oil prices was caused by fears of a broader recession after the U.S. Federal Reserve raised interest rates by 75 basis points with the Bank of England and Swiss National Bank did the same tightening last week.
In addition, U.S. oil and gas production continues to rise. The oil and gas rig count rose to 740 last week, its highest level since March 2020
Meanwhile, exports of petroleum products from China, once a major exporter, have continued to decline, leaving global supplies tight.
According to Chinese customs data released Saturday, the country’s gasoline exports fell 46% and diesel exports fell 93% in May from a year earlier, even as domestic demand slowed.
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Monday, June 20, 2022