The market evaluated the Fed’s most recent indications that another rate hike may be forthcoming in early May. It has raised concerns about a significant economic slowdown that might affect oil consumption. As a result, oil prices fell early on Wednesday.
Early on Wednesday, the benchmark WTI Crude for the United States was down 2.07% at $79.19. The standard Brent Crude for the rest of the world was down 2.05% for the day at $83.03.
Following the industry data from the American Petroleum Institute (API), which predicted that both crude oil and product stocks in the United States decreased last week, prices fell on Wednesday after rising on Tuesday.
Other information on Oil Prices:
A Fed official’s remarks on Tuesday implied that another modest rate increase would be required to counteract positive economic statistics from China. The second-largest economy in the world and the greatest consumer of crude oil reported GDP growth of 4.5 percent in the first quarter of 2023, exceeding analyst predictions of 4% growth, according to a Reuters poll. Since the first quarter of 2022, the growth was the biggest quarterly growth in China.
According to Vandana Hari, founder of oil market monitoring company Vanda Insights, “Crude futures were relatively range bound as a new week began… with the OPEC/non-OPEC output cuts announced a fortnight ago fully baked in.” The oil industry is still processing persistent indicators of a slowdown in the American economy.
India’s position in terms of Economy:
A global recession might be on its way but India seems to be safe. Recently the job opportunities in India show that India is right on track to avoid a recession. Indian import and exports have also increased recently where other countries are struggling. India is at a financial boom right due to proactive government strategies. Also, a lot of foreign companies are investing in India to expand their business. This also increases job prospects in India and helps the economy too.
For more news, click here.