The Magazine for Asian Investors
Crude oil futures closed sharply lower on Friday as fears grew that aggressive monetary tightening by the Federal Reserve could trigger a global recession and hurt energy demand.
- WTI crude futures fell $4.75, or 5.7%, at $78.74 a barrel.
- BRENT crude futures fell $4.31, or 4.8%, to close at $86.15 a barrel.
Both WTI and Brent crude futures closed at their lowest levels since January, and for the week, WTI crude futures fell 7.1%, while Brent crude futures fell 5.7%. Investors are selling crude oil contracts in a big way amid fears that the Federal Reserve’s (Fed) interest rate hike will push the global economy to the brink of recession and hurt demand for oil.
According to the IEA, global oil demand growth will slow in the fourth quarter, driven by a slowdown in China and the Organization for Economic Cooperation and Development (OECD).
Oil prices were also put under pressure by the appreciation of the dollar. This makes oil contracts more expensive for holders of other currencies.
The dollar index rose 1.65% to 113.1890 against the six major currencies in a basket of currencies.
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Saturday, September 24, 2022