Crude Prices Dwindle on Demand Fears and Robust Dollar

The crude prices in the international markets witnessed a slump of over 1 per cent on Friday's trade session. With this, the global crude rates are down for the third consecutive week as the market balances supply fears against the renewed economic concerns emerging from China and the United States of America reports Reuters.

The two important crude benchmarks - Brent and West Texas Intermediate (WTI) shed more than 1 per cent during yesterday's trade session. Brent was seen trading at $74.17 per barrel, down by 1.08 per cent and WTI at $70.04 per barrel, down by 1.17 per cent.

The U.S. dollar with which the crude prices are determined, clung to the modest gains against the Euro currency on Friday. The uncertainty surrounding the U.S. debt ceiling and monetary policy has prompted a shift for investors to park their funds in the safe-havens asset.

For the week, both the crude benchmarks were down by around 1.5 per cent, week-on-week.

Usually, a stronger greenback will make dollar-priced fuel more expensive for the holders of other countries currencies.

The growing worries over the economy of the U.S. entering recession and the postponement of the U.S. government's debt ceiling talks and banking sector crisis have added further woes to the fuel prices.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) has kept the global oil demand forecast untouched for 2023, expecting economic risks to be offset by higher demand growth from China.

China's April consumer price data grew at a slower pace than it had recorded in March, missing expectations. The situation has deepened the factory gate deflation refocusing doubts about its recovery from the COVID restrictions, and driving the oil demand growth.