Oil slumps as global economic growth and monetary policies worry the demand recovery
Oil prices fell as investors worried weakened global economic growth and tighter central bank monetary policies could hinder a recovery in fuel demand.
Brent futures for July fell 59 cents, or 0.53%, to $111.45 a barrel as of 0648 GMT, while West Texas Intermediate (WTI) June crude fell 56 cents, or 0.5%, to $111.65 on its last day in the front-month.
The more actively traded WTI contract for July fell 0.8% to $109.01 a barrel.
The International Monetary Fund (IMF) urged Asian economies to be wary of spillover risks from monetary tightening.
Central banks in the US, UK, and Australia have recently increased interest rates as Bank of Japan policy has opposed a global shift in monetary tightening.
Crude gains were limited this week as Brent and WTI traded in a tight range amid uncertain demand. Investors, worried about rising inflation and the aggressive actions of central banks, stay away from risky assets.
If US growth data continues to deteriorate, oil prices could enter a negative stock market feedback loop.
In the United States, Americans are getting back at the wheel despite high fuel prices, according to a report from the Federal Highway Administration.
On the gasoline supply side, South Korea's third-largest refinery, S-Oil, halted production and related processes in its alkylation unit at Onsan refinery due to an explosion. The shutdown is expected to affect already tight gasoline supplies in Asia.
Meanwhile, Iran is struggling to sell its crude oil, as there are still too many Russian products on the market.
Iran's crude exports to China are impacted by Beijing's preference for highly discounted Russian barrels. About 40 million barrels of Iranian oil, stored in tankers offshore in Asia looking for buyers, have fallen sharply since the start of the Ukraine war.
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