BusinessOil & Gas/Mining

Oil slips on signs of weak fuel demand, strong dollar

Oil prices also fell amid signs of weak demand, ANZ analysts said in a note, as U.S. gasoline and distillate inventories rose in the week ahead of the start of the U.S. driving season

Oil prices extended declines on Monday amid signs of weak fuel demand and as comments from U.S. Federal Reserve officials dampened hopes of interest rate cuts, which could slow growth and crimp energy use in the world’s biggest economy.

Brent crude futures slid 7 cents, or 0.1%, to US$82.72 a barrel by 0624 GMT, while U.S. West Texas Intermediate crude futures were at US$78.21 a barrel, down 5 cents.

“Oil markets shrugged off the impact of the Middle East conflicts and shifted (their) attention to the world economic outlook again,” Auckland-based independent analyst Tina Teng said.

China’s producer price index (PPI) contracted in April, suggesting that business demand remained sluggish, she said, adding that recent U.S. economic data signalled a slowdown as well.

Both benchmarks settled about US$1 lower on Friday as Fed officials debated whether U.S. interest rates are high enough to bring inflation back to 2%, offsetting gains earlier last week over concerns of supply disruptions from the Israel-Gaza conflict.

Analysts expect the U.S. central bank to keep its policy rate at the current level for longer, supporting the dollar. A stronger greenback makes dollar-denominated oil more expensive for investors holding other currencies.

Oil prices also fell amid signs of weak demand, ANZ analysts said in a note, as U.S. gasoline and distillate inventories rose in the week ahead of the start of the U.S. driving season.

The shipping industry is under increasing pressure to decarbonise. Especially now that the International Maritime Organization, the IMO, is being pushed to implement a charge on the sector’s greenhouse gas emissions, potentially as soon as September 2024, with the goal of reaching net zero by 2050.

 

Refiners globally are struggling with slumping profits for diesel as new refineries boost supplies and as mild weather in the northern hemisphere and slow economic activity eat into demand.

Still, the market remained supported by expectations that the Organization of the Petroleum Exporting Countries and their allies, together known as OPEC+, could extend supply cuts into the second half of the year.

 

Asaase Broadcasting Company broadcasts on radio via Asaase 99.5 in Accra, Asaase 98.5 in Kumasi, Asaase 99.7 in Tamale, Asaase 100.3 in Cape Coast, Asaase Pa 107.3 in Accra and our affiliates Azay FM 89.1 in Takoradi, Bawku FM 101.5 in Bawku, Bead FM 99.9 in Bimbilla, Mining City Radio 89.5 in Tarkwa, Nyatefe Radio 94.50 in Dzodze, Somuaa FM 89.9 in Gushegu, Stone City 90.7 in Ho and Wale FM 106.9 in Walewale.
Tune in to broadcasts online: asaaseradio.com, Sound Garden and TuneIn.

Follow us on Twitter: @asaaseradio995 (Accra), @asaase985ksi (Kumasi), @asaase997tamale (Tamale), @asaase1003 (Cape Coast) and AsaasePa1073
Instagram: asaaseradio995 (Accra), Asaase985ksi (Kumasi), asaase1003 (Cape Coast), asaase997tamale (Tamale) and Asaasepa107.3
LinkedIn: company/asaaseradio995

TikTok: @asaaseradio99.5
Live streaming on facebook.com at asaase99.5 (Accra), asaase985ksi (Kumasi), Asaase100.3 (Cape Coast), asaase99.7 (Tamale) and AsaasePa107.3. Also on YouTube: AsaaseXtra.
Join the conversation. Call Accra (020 000 9951 or 054 888 8995) or WhatsApp (020 000 0995). Call Kumasi (059 415 7985) or WhatsApp (020 631 5260). Call or WhatsApp Cape Coast (059 388 2652).

#AsaaseRadio
#AsaasePa
#TheVoiceofOurLand

Source
Reuters
Show More

Related Articles

Back to top button

Adblock Detected

ALLOW OUR ADS