Global oil prices fall amid doubts in demand

Global oil prices on June 17 morning showed a decrease, as investors have a negative assessment of the prospects for demand for it, reported from the auction data.

The price of August futures for Brent crude fell by 0.49% to $119.22 per barrel, July futures for WTI - by 0.55% to $116.94.

According to analysts, the increase in interest rates by central banks puts pressure on oil prices, despite the observed shortage of supplies.

In recent days, meetings of a number of major financial regulators took place, many of which decided to raise the refinancing rate. The US Federal Reserve System (FRS) raised it immediately by 75 basis points, up to 1.5-1.75% per annum, the Bank of England - up to 1.25% from 1% per annum, and the Swiss National Bank increased the rate for the first time in 15 years - to minus 0.25% per annum from minus 0.75%.

The tightening of monetary policy is associated with high inflation rates in the world. Thus, according to the results of May, annual inflation in the United States was a record 8.6% since 1981. Concerns about the pace of consumer price growth and related rate hikes are weighing on economic forecasts, affecting the outlook for demand for this commodity.

At the same time, investors pay attention to the news regarding supplies, which somewhat restrains the decline in oil prices. So, on June 16, the United States imposed new sanctions against a number of companies and individuals related to facilitating the export of Iranian oil products.





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