Oil prices drop sharply ahead of FED interest rate meeting
International benchmarks for crude oil sank by 4% on Monday, 12 June 2023, as market analysts underlined rising global supplies and weaker-than-expected demand growth
International benchmarks for crude oil sank by 4% on Monday, 12 June 2023, as market analysts underlined rising global supplies and weaker-than-expected demand growth ahead of an impending US Federal Reserve meeting scheduled this Wednesday.
Sources expect the FED to keep interest rates unchanged this month but are wary of the notion that hikes may resume next month, while mulish demand growth primarily in China has prompted Goldman Sachs to revise its oil forecasts for the remainder of the year through 2024 claiming an unexpected buildup in supplies.
Brent crude dipped by $2.95 or 3.9%, to conclude at $71.84/barrel the lowest reading since December 2021. West Texas Intermediate dropped $3.05 or 4.4% to $67.12/barrel.