Petroleum rates drifted lower on Wednesday, amid potential customers of a drop in unrefined need due to weak worldwide economic growth outlook.
With the International Monetary Fund lowering its forecast for worldwide economic development to 3.7%, from its earlier forecast of 3.9%, and decreasing Chinese economic development 6.2% from 6.4%, for the existing fiscal year, traders are banking on hopes petroleum need will see a drop in the near term.
Escalating stress in between the U.S. and China too have raised concerns that global oil demand will decline in the near term.
Petroleum futures for November ended down $1.79, or 2.4%, at $73.17 a barrel. On Tuesday, crude oil futures ended up $0.67, or 0.9%, at $74.96 a barrel.
Crude oil prices eased regardless of reports that Hurricane Michael crashed into the Florida’s northwestern Panhandle coast today, flooding towns and ripping up trees with 155 mile per hour winds. Due to platform evacuations and shut downs ahead of the Hurricane Michael, it is reported that more than one-third of natural gas output from the offshore U.S. Gulf of Mexico wells has actually been lost.
The weekly oil report from the American Petroleum Institute is due later in the day. The data from the Energy Info Administration is due on Thursday.
The material has been offered by InstaForex Business – www.instaforex.com