Harvest Global Markets :

Thursday’s Asian morning trade saw a decline in oil prices as the U.S. dollar increased on predictions of rate hikes and because recent economic data from the US and China did not sufficiently support hopes that demand will increase. The price of Brent crude futures decreased by 80 cents or 0.96% to $82.32 a barrel. Futures for West Texas Intermediate crude (WTI) fell 69 cents, or 0.87%, to $78.47. Both benchmarks are at their lowest levels since OPEC+ announced its unexpected production cut on April 2. After falling 2% on Wednesday, both benchmarks are falling for a second day. This week, the U.S. dollar index has increased by about 0.40%. Oil costs increase for holders of other currencies as the dollar strengthens. The economy of the United States barely changed.

In the recent weeks, economic growth slowed, according to the Fed’s Beige Book report, which was published on Wednesday. However, U.S. inflation remained high, which could lead to further monetary tightening. Expectations that the Bank of England and the European Central Bank will keep raising interest rates were confirmed by high inflation readings in the UK and the euro area. In May, some Fed officials also urged for a rate increase and stated that the timing of rate increases in the future will depend on the strength of the economy. Markets are putting in an 85% chance that the Fed will raise rates by 25 basis points in May, according to the prices of Fed fund futures, and an increasing number of participants also expect a hike in June.