Image: Reuters Berita 24 English - Following a slew of interest rate hikes throughout the world this week, oil prices dipped marginally on ...
 |
| Image: Reuters |
Berita 24 English - Following a slew of interest rate hikes throughout the world this week, oil prices dipped marginally on Friday as concerns about global economic growth and uncertainties weighed on markets.
Brent crude prices slid 83 cents, or 0.8 percent, to $118.98 a barrel, while WTI crude futures in the United States fell 80 cents, or 0.7 percent, to $116.79 a barrel.
Brent crude futures would witness their first weekly decline in five weeks if losses hold through the day, while U.S. crude futures would see their first weekly dip in eight weeks.
Central banks throughout Europe boosted interest rates on Thursday, some by surprising amounts, and hinted at much higher borrowing costs in the future in order to combat skyrocketing inflation, which is eroding savings and squeezing corporate profits.
On Thursday, Argentina's central bank raised its benchmark interest rate by the largest in three years, as the South American country battles high inflation of over 60%.
These changes followed the Federal Reserve of the United States raising interest rates by 75 basis points this week, the most since 1994.
Data suggest that policymakers at the Federal Reserve are less optimistic about the economy than they have been since the pandemic's peak.
On Thursday, U.S. market indices fell dramatically in a broad sell-off as recession fears intensified.
On Wednesday, the International Energy Agency cautioned that sky-high oil prices and faltering economic forecasts have clouded the outlook for future demand.
Following the announcement of fresh sanctions against Iran by the US, investors have remained focused on restricted supply.
"Price risk is to the upside through 3Q 2022, with a rebound in China demand sentiment and an expected seasonal ramp-up in OECD oil demand into August," said Baden Moore, head of commodities research at the National Australia Bank.
