• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Traders Cautiously Optimistic About Crude

Traders Cautiously Optimistic About Crude

In the forthcoming week, traders…

Oil Prices Set to Rise as Global Stock Refills Ramp Up

Oil Prices Set to Rise as Global Stock Refills Ramp Up

China's increased oil inventory building,…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Prices Down Slightly As Economic Worries Weigh On Demand

  • Oil prices extend losses as demand concerns persist despite better-than-expected economic growth in China.
  • Refinery margins remain under pressure with weakness seen in middle distillates and gasoline cracks.
  • Rising bond yields and a stable US dollar continue to weigh down on commodity markets.

Oil prices extended last week’s losses and traded lower early on Monday, weighed down by lingering concerns about demand amid economic growth worries. 

As of 7:08 a.m. EDT on Monday, the U.S. benchmark, WTI Crude, was trading down by 0.31% at $77.60. The international benchmark, Brent Crude, was down by 0.42% on the day at $81.30. 

Oil continued the drop from last week, which was the first week in five to see a weekly decline in prices, as concerns about demand resurfaced despite data from China showing better-than-expected economic growth for the first quarter of the year.   

Across oil markets, “refinery margins remain under pressure, largely a result of weakness in middle distillates. However, gasoline cracks have also started to see some weakness,” ING strategists Warren Patterson and Ewa Manthey said on Monday. 

“The growth-sensitive commodities, such as copper and crude oil prices, fell due to risk-aversion sentiment as the weak US economic data and disappointing tech earnings sparked growth concerns,” Tina Teng, a market analyst at CMC Markets, wrote on Monday.

Rising bond yields and the stabilized U.S. dollar are also weighing down on commodity markets, Teng added. 

A rising U.S. dollar makes crude oil more expensive for holders of other currencies. 

“Crude oil prices traded lower in Asia overnight on a combination of technical factors, such as ongoing attempts to close the gaps down to $80 in Brent and $75.70 in WTI as well as long-liquidation from funds that bought futures contracts following the April 3 OPEC+ production cut announcement,” analysts at Saxo Bank said in a note today.  

“The short-term fundamental outlook also continues to deteriorate with recession worries more than offsetting supply cuts as refinery margins remain under pressure across all the major trading hubs sending a warning sign about demand ahead of the peak consumption season,” they added.  

By Tsvetana Paraskova for Oilprice.com


More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • Mamdouh Salameh on April 24 2023 said:
    It is a temporary hiccup for oil prices since the oil fundamentals are strong as they were a weak ago.

    And while there are some bearish factors such as weak US economic data, efforts to control inflation by hiking interest rate and concerns about recession, the bullish factor of China’s economic rebound is far stronger to eclipse the bearish factors.

    That is why I think there is an element of price manipulation at play in the market probably by oil traders and also the United States aimed at depressing oil prices to start refilling the SPR, undermining the OPEC+ cuts and reducing Russian oil export revenues.

    However, this will be short-lived with prices starting soon to recoup their losses and resume their surge.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News