WTI crude settles $8.93, slips $100 on China lockdown concerns, dragging demand.

New York’s West Texas Intermediate Crude Oil (WTI) closed down more than 8 percent, down from $100 on Tuesday (July 5) as investors worried. that The global economy signaling a recession and China’s tendency to resume lockdowns in key cities This may result in the decline in oil demand in the world market.

– Crude Oil (WTI) Delivered in Aug. It was down $8.93, or 8.2 percent, at $99.50 a barrel. which is the lowest closing level since April 25
– Brent Crude Oil (BRENT) Delivered in Sept. It fell $10.73, or 9.5 percent, at $102.77 a barrel. which is the lowest closing level since May 10

WTI Crude Oil and Brent Crude Oil They all fell by one percentage point in the worst single day since March 9 as investors worried about the coronavirus situation in China, with Shanghai, China’s financial center, announced measures to test for the coronavirus. -19 A large-scale three-day program aimed at tracking infections related to the outbreak in a karaoke area.

Nomura analyst Ding Lu said. Number of people infected with COVID-19 The increase has caused many Chinese cities to be more vigilant about the situation. As of Monday, July 4, the number of cities that are currently restricted to travel has risen to 11, more than doubling from five a week earlier.

The market has also been affected by recession concerns both in the US and around the world. in the United States The Federal Reserve Bank of Atlanta has released its latest GDPNow forecast model showing that The US economy contracted 2.1% in the second quarter, from an earlier indication of a 1.0% contraction.

GDPNow forecasts show that the US economy contracted in the second quarter more severely than the 1.6% contraction in the first quarter, indicating that the US economy has entered a recession. because the economy contracted for 2 consecutive quarters

Citigroup predicts that Brent crude prices will drop to $65 later this year. If the US economy enters a recession

Investors Keep an Eye on Weekly US Oil Stock Reports The US Energy Information Administration (EIA) will reveal this Thursday at around 10 p.m. KST.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.