Oil down as global economy slows down

February 21, 2023 (MLN): Brent oil prices fell on Tuesday as fears that a global economic slowdown would reduce fuel demand prompted investors to take profits on the previous day's gains, as Reuters reported. 

Traders are awaiting the minutes of the latest Federal Reserve meeting, due on Wednesday, after recent data on core inflation raised the risk of interest rates remaining higher for longer, it added. 

Brent crude was down 66 cents, or 0.8%, at $83.41 a barrel as of 0750 GMT. U.S. West Texas Intermediate crude (WTI) futures for March, which expire on Tuesday, were up 4 cents, or 0.1%, at $76.38.

WTI futures did not settle on Monday because of a public holiday in the United States. The April WTI contract, currently the most active, was up 23 cents at $76.78, it further added. 

"Brent is at the middle of the trading range since late December of between $78 and $88 a barrel, with some investors taking profits on concerns over more U.S. interest rate hikes while others kept bullish sentiment on hopes for a demand recovery in China," said Satoru Yoshida, a commodity analyst with Rakuten Securities, it noted. 

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