Heavy oil losses last week and Dow Jones’ worst daily performance in a year and a half
This week, global oil prices fell by 5%
Brent crude fell by 4.52% compared to the previous week to close at the US $106.65 per barrel
In the meantime, light sweet oil, or West Texas Intermediate (WTI), closed at $102.7 per barrel, 4.56% lower
Evest follows market developments in the following report
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Oil lost 4.2% last week
The weekly performance of oil sessions
Dow Jones posts the largest daily decline in two and a half years
Oil lost 4.2% last week
The price of West Texas Intermediate oil fell $1.72 on Friday and its weekly loss accumulated by $4.2, affected by the potential decline in global crude oil demand, according to operators
The price per barrel reached $102.07 at the end of the session due to a fall in the price on Friday, equivalent to 1.7%
Specialist sources have commented that the market has reacted negatively to the upcoming rise in US interest rates and COVID-19 lockdowns in China due to their impact on the global economy
According to experts, these factors have limited the upward impact on the price of crude oil that the European Union may generate against Russia’s energy sector
The price of WTI crude was subject to the impact of adverse signals news during the phase
Natural gas futures for delivery in May fell by 42 cents to $6.53 per thousand cubic feet
In contrast, gasoline futures, which had the date of supply that month, lost more than three cents, recorded at close $3.30 per gallon
On the other hand, in the London market, the price of Brent oil barrel, the European benchmark, declined operations to $106.52, meaning a decline of $1.92, or 1.77%
Analysts also agreed that the price surge in recent months had begun to yield signs of worsening demand, limiting the recovery at the end of this week
artical name Heavy oil losses
The International Monetary Fund (IMF) estimates the global economy to grow by 3.6% for 2022
Global oil prices also fell when the world’s economic outlook was bleaker
At the beginning of the week, oil prices rose positively with increases for four consecutive days
Global crude oil prices rose on Monday (18/4/2022) by more than 1%
However, IMF “beat” global oil prices on the next trading day
Two of the global oil price benchmarks, Brent and West Texas Intermediate (WTI) fell 5.22% compactly from the previous day’s position
The market responded negatively to the IMF’s latest report
In the latest edition of the World Economic Outlook, the Washington
D.C.-based agency estimates that the global economy will rise by 3.6% for 2022 and 2022
down 0.8 percentage points and 0.25 percentage points, respectively, compared with previous projections
“The prospects of the global economy have changed completely, largely because of Russia’s attack on Ukraine,” Pierre-Olivier Gurnshas, chief economist at the International Monetary Fund, said in the report
According to the International Monetary Fund, war creates supply-side disruptions because Russia and Ukraine are major producers of a number of goods
From oil, natural gas, coal, wheat and soybeans to sunflower seeds
In addition to the war
economic sanctions imposed on Russia limited the supply of goods to world markets
The imbalance between supply and demand leads to tangible inflationary pressures around the world
In turn, high inflation will “weaken” purchasing power and thus economic growth
“The war has caused a supply-side shock to the world economy in recent years
such as the earthquake, the effects of which will extend to commodity markets, trade routes and financial channels ”
Gourinchas continued
When the global economic outlook is bleaker, the market expects lower energy demand as well
So, it is normal for the price of oil to fall
Global oil prices are expected to experience high volatility in the future
This is because market players remain very cautious given the evolution of the Russian-Ukrainian
conflict that may affect global oil supply and demand at any time
artical name Heavy oil losses
Dow Jones posts the largest daily decline in two and a half years
The Dow posted its biggest single-day decline since October 2020, while the Nasdaq’s rise or decline of more than 2% on Friday was its eighth in April
Wall Street fell on Friday by more than 2.5 percent, ensuring that the three major indices in the negative zone ended this week, as surprise earnings news and increased certainty about severe near-term interest rate increases affected investors
It was the third consecutive week of losses for the S&P and Nasdaq, while Dow Jones recorded its fourth consecutive weekly decline
For the Dow, its 2.82 percent decline on Friday was its biggest single-day decline since October 2020
Overvalued trading fluctuations have become more common recently
as traders adapt to new data points from earnings, as well as when prices rise again
For the Nasdaq, Friday was the eighth session in April, out of 15 trading days this month
with the index rising or falling by more than 2 percent
Concerns about the risk of higher interest rates continued to resonate after US Federal Reserve Chairman Jerome Powell’s hardline pivot on Thursday, where he supported moving more quickly to combat inflation and said a 50-basis point increase would be “on the table” as he meets next month
The notion of “forward loading“, the U.S. central bank’s ultra-easy monetary policy rollback
which Powell explained on Thursday, also forced traders to reassess the aggressiveness of subsequent rate hikes
The CBOE volatility index, also known as Wall Street’s fear gauge
jumped on Friday, ending at its highest level since the middle of last month
artical name Heavy oil losses