2023-04-18 13:23:24

Oil prices fell for a second day on Tuesday following upbeat economic data from China failed to divert focus from a possible hike in US interest rates, as well as on broader concern regarding the growth outlook.

Oil has also come under pressure due to the federal government of Iraq and the Kurdistan Regional Government taking a step towards resuming northern oil exports from the Turkish port of Ceyhan following they were halted last month.

Brent crude fell 33 cents, or 0.4%, to $84.43 a barrel by 12:15 GMT, giving up previous gains, while US West Texas Intermediate crude fell 37 cents, or 0.5%, to $80.46 a barrel.

Referring to the oil price outlook, Craig Erlam, senior market analyst at OANDA, said: “The next move may depend on global growth and whether the economy can weather the latest storm, particularly in the US where tightening credit conditions might weigh heavily on growth. for the rest of the year.”

Earlier in the session, oil found support from figures showing that the Chinese economy grew faster than expected, by 4.5% in the first quarter, and that oil refinery productivity rose to record levels in March.

However, the possibility of adopting another hike in US interest rates remained a drag on sentiment. Traders expect the US Federal Reserve to raise interest rates by 25 basis points when it meets in May.

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