Oil prices fall 5% after IMF cuts growth outlook
Oil prices were down about 5% in volatile trading on Tuesday on demand concerns after the International Monetary Fund (IMF) cut its economic growth forecasts and warned of higher inflation. Brent crude, the global benchmark, fell $5.91, or 5.22%, to settle at $107.25 a barrel, while U.S. West Texas Intermediate dropped $5.65, or 5.22%, to settle at $102.56 a barrel. Prices declined despite lower output from OPEC+, which produced 1.45 million barrels per day (bpd) below its targets in March, as Russian output began to decrease following sanctions imposed by the West over its invasion of Ukraine, according to a report from the producer alliance seen by Reuters. Click Here to read more from Reuters.
Gas prices are creeping higher again
Prices at the pump have stopped falling from their recent highs — and some forecasters are warning of another uptick as the summer driving season looms and the war in Ukraine continues. After a slow-but-steady decline, the national average price for regular gasoline bottomed out at $4.07 a gallon last week, according to AAA. Since then the national average has increased four days in a row, climbing to $4.10 a gallon on Tuesday. Click Here to read more from CNN Business.
Demand Destruction Fears Drag Oil And Gas Prices Lower
US cash natural gas prices for next-day deliveries have soared this week, with many locations trading above $7 per mmBtu for the first time since the Big Freeze in February 2021.
The Henry Hub May ‘22 contract has been on the rise recently, settling at $7.82 per mmBtu on Monday, though a downwards correction on Tuesday brought trading closer to $7 per mmBtu. The peculiarity of the gas price spike is that demand is expected to be easing over the next seven days and production remains stagnant at 93.4 BCf per day. With domestic coal supplies remaining tight, disallowing any large-scale fuel switching, the longevity of the bull run will largely depend on LNG outflows from the US. Click Here to read more from Oil Price.
Mariupol official warns of ‘last days’ as Russia demands Ukrainian troops surrender
Ukraine’s port city of Mariupol is facing its “last days, if not hours,” a commander in the besieged city revealed this week as Russian forces gave Ukrainian soldiers until noon on Wednesday to surrender. Thousands of civilians and Ukrainian troops remain sheltered in a steel plant, the last remaining stronghold of the city. However, the building is surrounded by Russian forces, leaving the people inside with no access to “normal” supplies of food and water, an adviser for the city’s mayor said. Click Here to read more from Yahoo News.