Oil futures contracts closed lower, in a session marked by the prospect of low growth in China and more monetary tightening in developed economies, which may exacerbate the economic slowdown and fuel fears of global recession. The appreciation of the dollar against rivals also weighed on business, by making the commodity more expensive for holders of other currencies.
On the New York Mercantile Exchange (Nymex), WTI Crude Oil for January closed down 1.58% ($1.56) at $80.08 a barrel, while Brent for January 2023 traded on the Intercontinental Exchange (ICE) fell 2.41% ($2.16) to settle at $87.62 a barrel. In the week, the retreats were 9.98% and 8.71%, respectively.
According to Capital Economics, the increase in cases of covid-19, one of the main buyers of oil in the world, raised concerns about the demand for commodities. “While we still expect the price of oil to rise slightly from here, with tighter European Union sanctions on Russian oil taking effect in December, persistent lockdowns in major Chinese cities are the main downside risk to our forecast.” . Commerzbank projects a stabilization in oil prices soon, “as it becomes clear how much supply will decrease”.
According to Bloombergthe G7, which brings together the seven most industrialized countries in the world, should announce next Wednesday (23) a ceiling for the price of oil in Russia.
Boston Federal Reserve Chair Susan Collins said earlier that her views are open on the intensity of December’s rate hike, reinforcing the need for more rate hikes to contain inflation.
Source: CNN Brasil
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