SINGAPORE- Oil prices were roughly unchanged on Monday as concerns about global macroeconomic headwinds and possible further interest rate hikes from the US Federal
Reserve offset forecasts of tighter supplies amid OPEC+ cuts.
Brent crude futures were last up 4 cents to $75.45 a barrel after settling up 0.8 percent on Friday. US West Texas Intermediate crude was at $70.67 a barrel, up 3 cents, after closing 1.1 percent higher in the previous session.
Brent fell for the fourth straight quarter by the end of June while WTI notched a second quarterly drop as the world’s top two economies, the US and China, lost speed in the second quarter.
Fears of a further slowdown hurting fuel demand grew after data on Friday showed US inflation still outpacing the central bank’s 2 percent target and stoked expectations it would hike interest rates again.
“Hawkish commentary on rates continues to raise concerns of the demand outlook weighing on prices,” National Australia Bank analysts said in a note.
Higher interest rates could strengthen the greenback, making commodities more expensive for holders of other currencies, and also dampen oil demand.
Economists and analysts have lowered their Brent price forecasts to average at $83.03 a barrel in 2023, in the June Reuters oil poll.
Factory activity growth in China, the world’s largest crude importer, also slowed in June as sentiment and recruitment cooled on the back of sluggish market conditions, according to the Caixin/S&P Global private sector survey. – Reuters
