Crude falls more than 3% due to rail agreement in the US and doubts about demand

By: News Team

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Oil fell more than 3% on Thursday to hit a one-week low on a tentative deal averting a U.S. rail strike, expectations of weaker global demand and dollar strength ahead of a possible big hike in interest rates.

  • Brent crude fell $3.26, or 3.5%, to $90.84 a barrel. US West Texas Intermediate crude fell $3.38, or 3.8%, to $85.10. In both contracts, the closing was the lowest since September 8.
  • Major US railroads and unions reached a tentative deal brokered by the administration of President Joe Biden to avert a strike that could have affected food and fuel supplies across the country.
  • Downside risks continue to dominate the global economic outlook with some countries expected to slip into recession in 2023, but it is too early to tell whether there will be a global downturn, IMF spokesman Gerry Rice said.
  • World Bank Chief Economist Indermit Gill said he was concerned about “widespread stagflation” – a period of low growth and high inflation – in the global economy, noting that the bank had lowered forecasts for three-quarters parts of all countries.
  • The International Energy Agency said this week that oil demand growth will stall in the fourth quarter. The dollar remained near recent highs, supported by expectations that the US Federal Reserve will continue to tighten its monetary policy.
  • Crude oil has fallen substantially after rallying close to record highs in March, after Russia’s invasion of Ukraine added to supply concerns, pressured by recessionary prospects and weaker demand. weak.
  • U.S. crude inventories rose by 2.4 million barrels, more than expected, data on Wednesday showed, though again buoyed by ongoing releases from the Strategic Petroleum Reserve, part of a program to End is scheduled for next month.

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