Oil prices are falling on Tuesday morning after a growth following the last session. Commodity markets are pressured by concerns about the global recession amid elevated risks in the financial sector.
The cost of May futures for Brent at London’s ICE Futures Exchange stood at $73.08 a barrel by 7:07 a.m., down $0.71 (0.96%) from the close of the previous session. At the close of trading the day before those contracts grew by $0.92 to $73.79 per barrel.
The price of WTI futures for April at electronic trades of the New York Mercantile Exchange (NYMEX) is $66.9 per barrel by that time, which is $0.74 (1.09%) lower than the final value of the previous session. The contract rose $0.9 to $67.64 on Monday.
“Oil is under pressure from general weakness in the economy as the outlook for global GDP worsens because of worries about the financial sector,” said Bobby Fraser of Schneider Electric. – Demand is heavily dependent on economic growth.”
The market is also waiting for the outcome of the Federal Reserve’s (Fed) March meeting, which concludes Wednesday night. Consensus forecasts call for a 25 basis point hike in the key interest rate, with many economists also expecting the rate to remain unchanged.
“Volatility is likely to persist this week, with financial market concerns remaining in focus. In addition, we are awaiting the Fed meeting, which increases uncertainty,” ING bank analysts wrote.
