Oil falls on fears inflation may dent fuel demand growth
Oil prices dropped on Wednesday, after a mixed finish in the previous session, amid worries that soaring coal and natural gas prices in China, India and Europe will stoke inflation and slow global growth, reducing oil demand.
A strong U.S. dollar, trading near a one-year high, also weighed on oil prices, as it makes oil more expensive for those holding other currencies.
U.S. West Texas Intermediate (WTI) crude futures fell 71 cents, or 0.9%, to $79.93 a barrel at 0247 GMT after gaining 12 cents on Tuesday.
Brent crude futures fell 70 cents, or 0.8%, to $82.72 a barrel, extending a 23 cent loss on Tuesday.
The International Monetary Fund on Tuesday cut its growth outlooks for the United States and other major economies on worries supply chain disruptions and cost pressures are holding back the global economic recovery from the coronavirus pandemic.
Commonwealth Bank analysts highlighted the IMF’s concern that “momentum has weakened and uncertainty has increased”.
However, oil watchers are still focused on whether soaring gas and coal prices will lead to more demand for oil products for power generation.
China crude imports down 15% on yr, gas imports at 9-mth high
China’s September crude oil imports fell 15.3% from a year earlier, data showed on Wednesday, as companies drew on inventories amid rising global prices and as tightened import quotas continued to constrain purchases.
China Jan-Sept crude oil imports down 6.8% at 387 mln tonnes - customs
China Jan-Sept crude oil imports down 6.8% at 387 million tonnes, according to General Administration of Customs on Wednesday
Rising energy prices will squeeze company profits, says business consultant
Volatile energy markets are here to stay, IEA warns
Energy prices around the world are at record highs as a power crunch hits Europe and Asia — and the International Energy Agency warned Wednesday that volatility is here to stay.
In its annual , the Paris-based agency said the world is underinvesting now for future energy consumption, which will make the transition to net-zero emissions unstable.
The report pointed to policy and demand uncertainties, among other things, as reasons behind the current underinvestment.
IEA says clean energy progress remains ‘far too slow’
The International Energy Agency issued a sobering warning Wednesday, claiming that clean energy progress remained “far too slow to put global emissions into sustained decline towards net zero.”
China coal prices hit record high as floods add to supply woes
China’s thermal coal prices surged to fresh record highs on Wednesday as recent floods in a key coal producing province worsened a supply crunch, just as new efforts by Beijing to liberalise power prices boosted demand from power generators.
Reference: CNBC, Reuters
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