Oil prices dip on concerns over weaker economic growth

  • World
  • Wednesday, 07 Jun 2023

NEW YORK, June 6 (Xinhua) -- Crude oil futures prices declined on Tuesday as weaker economic growth prospects dampened market sentiment.

The West Texas Intermediate (WTI) for July delivery fell 0.41 U.S. dollars, or 0.57 percent, to settle at 71.74 dollars a barrel on the New York Mercantile Exchange. Brent crude for August delivery decreased by 0.42 dollars, or 0.55 percent, to settle at 76.29 dollars a barrel on the London ICE Futures Exchange.

The U.S. economy would expand by 1.3 percent in 2023 and 1 percent in 2024, down from earlier forecasts of 1.6 percent and 1.8 percent, respectively, according to a short-term energy outlook report issued by the U.S. Energy Information Administration (EIA) on Tuesday.

"Lower GDP growth reduces total U.S. energy consumption in both years compared with last month's forecast," said the report.

The World Bank also cut its forecast on global economic growth in 2024 from 2.7 percent to 2.4 percent, though it revised the global GDP growth forecast in 2023 to 2.1 percent from 1.7 percent, according to a report issued by the World Bank on Tuesday.

However, the EIA report raised forecasts on Brent spot oil prices in 2023 and 2024, due to the extension of production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its partners announced on Sunday.

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