Oil prices fell in the third trading session on Wednesday, as expectations that the US Federal Reserve will indicate further interest rates will increase later in the day, fueling concerns about lower global economic growth and fuel demand.
Brent crude futures for April delivery fell 30 cents to $82.75 a barrel at 0721 GMT, after falling 1.2% on Tuesday. West Texas Intermediate (WTI) crude futures for April delivery fell 38 cents to $75.98 a barrel. The March WTI contract ended Tuesday, down 18 cents.
The Federal Reserve will release the minutes of its last meeting on Wednesday, which will give traders an idea of how officials predict interest rates will go after the latest data showed stronger-than-expected US employment and consumer prices.
Higher interest rates boost the dollar and make dollar-denominated oil more expensive for holders of other currencies.
However, other economic reports from the United States, the world’s largest oil consumer, showed some troubling signs. In January, existing real estate sales fell to their lowest level since October 2010, making it the 12th-month decline in the longest series since 1999.
Growing recession concerns are capping oil prices, but the market is cautiously optimistic about China’s demand recovery, especially for gasoline and jet fuel.
A preliminary survey also showed an increase in US crude stockpiles, exacerbating demand concerns. However, tighter global supply expectations and increased demand from China softened the overall price weakness. Analysts expect China’s oil imports to reach a record high in 2023 as new refineries come into operation to meet the growing demand for transportation fuel.