Oil Prices Trending Lower Amid Concerns Of A Slowing Global Economy

Credit: Maxim Hopman/Unsplash

Energy stocks are set to open lower as falling oil prices continue to weigh in on the sector. The major market futures are higher ahead of the release of notes from the most recent Federal Reserve Meeting in hopes the Fed will ease their stance on aggressive interest rates, reports Nasdaq.

Impact of COVID cases in China

WTI and Brent crude oil futures continue to trend lower, after slumping in the previous session, amid concerns over weak demand due to a slowing global economy. Additionally, rising COVID-19 cases in China have pushed investors to the edge of their seat as the possibility of the nation reintegrating coronavirus curbs increases. Signs of a weakening global economy are being seen across the world, with nations such as China which recently increased export quotas for refined oil products in the first batch for 2023, signaling expectations of poor domestic demand. Also, Saudi Arabia may further cut the prices for its flagship Arab Light crude grade to Asia in February, after they were set at a 10-month low for this month, as concerns of oversupply continued to cloud the market.

Natural gas futures are slightly higher after plunging more than 10% yesterday as North America continues to experience warmer-than-normal temperatures.

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Source: Nasdaq