AGL 6.78 Increased By ▲ 0.04 (0.59%)
ANL 9.38 Increased By ▲ 0.06 (0.64%)
AVN 81.40 Increased By ▲ 0.95 (1.18%)
BOP 5.47 Increased By ▲ 0.06 (1.11%)
CNERGY 5.03 Increased By ▲ 0.07 (1.41%)
EFERT 82.99 Increased By ▲ 3.08 (3.85%)
EPCL 58.95 Increased By ▲ 2.62 (4.65%)
FCCL 15.80 Decreased By ▼ -0.07 (-0.44%)
FFL 6.50 Increased By ▲ 0.15 (2.36%)
FLYNG 8.47 Increased By ▲ 0.17 (2.05%)
GGGL 10.23 Increased By ▲ 0.15 (1.49%)
GGL 16.64 Increased By ▲ 0.38 (2.34%)
GTECH 8.60 Increased By ▲ 0.12 (1.42%)
HUMNL 6.45 Increased By ▲ 0.06 (0.94%)
KEL 3.05 Increased By ▲ 0.07 (2.35%)
LOTCHEM 29.88 Increased By ▲ 0.99 (3.43%)
MLCF 28.80 Increased By ▲ 0.15 (0.52%)
OGDC 76.35 Increased By ▲ 1.85 (2.48%)
PAEL 16.35 Increased By ▲ 0.22 (1.36%)
PIBTL 5.78 Increased By ▲ 0.13 (2.3%)
PRL 17.45 Increased By ▲ 0.47 (2.77%)
SILK 1.16 Decreased By ▼ -0.03 (-2.52%)
TELE 11.40 Decreased By ▼ -0.05 (-0.44%)
TPL 8.17 Increased By ▲ 0.17 (2.13%)
TPLP 22.25 Increased By ▲ 0.90 (4.22%)
TREET 23.58 Increased By ▲ 0.48 (2.08%)
TRG 148.00 Increased By ▲ 4.09 (2.84%)
UNITY 23.35 Increased By ▲ 0.34 (1.48%)
WAVES 11.70 Increased By ▲ 0.10 (0.86%)
WTL 1.59 Increased By ▲ 0.02 (1.27%)
BR100 4,249 Increased By 69.2 (1.65%)
BR30 16,585 Increased By 383.6 (2.37%)
KSE100 42,161 Increased By 549.2 (1.32%)
KSE30 15,895 Increased By 290.3 (1.86%)
Follow us

NEW YORK: Oil prices tumbled about 5% to a three-week low on Friday, led by a slump in U.S. gasoline futures, as interest rate hikes from major central banks fuelled worries about a sharp economic slowdown.

Brent futures fell $5.85, or 4.9%, to $113.96 a barrel by 11:02 a.m. EDT (1502 GMT), while U.S. West Texas Intermediate (WTI) crude fell $6.66, or 5.7%, to $110.93.

For the week, Brent was on track for its first weekly dip in five weeks, and WTI was on track for its first decline in eight weeks as concerns grow that interest rate hikes could cause a recession.

Those fears helped pressure U.S. gasoline futures down by over 7% with analysts worrying high gasoline prices will start impacting demand for the fuel.

Automobile group AAA said the price of diesel at the pump hit a record high $5.798 per gallon on Friday, while the price of gasoline hit its record of $5.016 earlier in the week.

Global central bankers, who shared the limelight for skirting a pandemic-driven depression with quick action two years ago, are now stumbling through the aftermath as they try to quell an inflation surge none predicted or have been able to forestall.

US oil to test support at $114.41

"The influence of the macro environment has started to take over from oil specific fundamentals in recent days," said Investec's head of commodities Callum Macpherson.

The U.S. Federal Reserve and the European Central Bank both have enough credibility to engineer a reduction in inflation without causing a deep recession like the last time the U.S. central bank battled such fast-rising prices, St. Louis Fed President James Bullard said.

But with the Fed expected to keep raising interest rates, open interest in WTI futures on the New York Mercantile Exchange fell on Thursday to its lowest since May 2016 as investors cut back on risky assets like commodities.

The global oil market continues to show signs of "turbulence", Russian Deputy Prime Minister Alexander Novak said, blaming the uncertainties over oil production recovery in Libya, Iran and Venezuela and a lack of energy infrastructure.

Much of that turbulence, however, was due to Russia's actions since its invasion of Ukraine on Feb. 24.

Italy may declare a heightened "state of alert" on natural gas next week if Russia continues to curb its supplies, two government sources said after energy company Eni reported a shortfall in flows from Moscow for the third day in a row.

The European Union's executive, meanwhile, recommended that Ukraine and Moldova become candidates for membership, a milestone in their potential path from former Soviet republics to developed economies in the world's largest trading bloc.

Comments

Comments are closed.

samir sardana Jun 18, 2022 01:33am
Within 24 hours of US fed hike - we had the Swiss and the Brits BUT Double digit oil is history Do they really think they can lower oil prices by rate hikes Anyways gasoline sales data in US will show the story OR IS THE AIM TO CRASH OIL AND GAS TO NAIL RUSSIA IN UKRAINE ? IN THE COLD WAR - SAUDIA AND US AND THE NORTH SEA FLOODED THE WORLD WITH OIL - AND THERE WAS NO CHINA OIL DEMAND - WHICH LED TO 10 USD OIL FOR SEVERAL YEARS THAT DESTROYED USSR - NOT THE AFGHAN WAR. SIMILARLY IT IS NOT THE COST OF THE UKR WAR FOR RUSSIA. IT IS CRASH IN OIL AND GAS DEMAND AND RATES + SANCTIONS + THREAT OF INTERNAL STRIFE.dindoooindoo
thumb_up Recommended (0)