During trading on Wednesday, oil prices are moderately declining. However, Brent is still holding near a three-year high, Interfax reports.
The cost of Brent December futures at the London stock exchange ICE Futures by 8:10 Kyiv time on Wednesday amounted to $83.34 per barrel, which is $0.08 (0.1%) lower than the closing price of the previous session. As a result of trading on Tuesday, these contracts fell by $0.23 (0.3%) to $83.42 per barrel.
The price of WTI November futures at the electronic trading of the New York Mercantile Exchange (NYMEX) by this time amounted to $80.53 per barrel, which is $0.11 (0.14%) less than the final value of the previous session. The day before, the value of these contracts increased by $0.12 (0.1%) to $80.64 per barrel.
The International Monetary Fund on Tuesday downgraded its annual economic growth forecast for the United States and other major economies around the world due to problems in global supply chains and inflationary pressures that are holding back the economic recovery from the effects of the COVID-19 pandemic.
IMF experts downgraded the forecast for global economic growth to 5.9% from 6% announced in July. The organization also predicts that the pace will slow further next year at 4.9%.
However, many analysts still believe that the sharp rise in gas and coal prices will increase the demand for petroleum products used to generate electricity. “The market is increasingly expecting that high gas and coal prices are likely to boost demand for other fuels such as diesel and oil,” said research firm ANZ Research in a commentary.