Oil and gas stocks fell alongside crude futures on Tuesday after weaker-than-expected Chinese import data and hawkish testimony from US Fed Chairman Jerome Powell increased the likelihood of further rate hikes.
Near-term Nymex crude oil (CL1:COM) Deadline for delivery in April -3.6% $77.58/barrel and Maybrent crude oil (CO1:COM) payment -3.3% At $83.29/bbl, both benchmarks saw their biggest drop in two months.
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“If the Fed decides to keep inflation under control until grandpa cries, and then raise interest rates until it hurts the economy as a whole, that’s not good for GDP,” said CFRA Research’s Stewart Glickman. Oil demand correlates with GDP”That’s bad for oil prices.”
Meanwhile, China’s imports fell by 10.2% in the first two months of the year. That compares with her 7.5% decline in December and his 5.1% decline, which economists expect the consensus to be.
The data also showed China’s oil imports fell 1.3% year-on-year, equivalent to 10.44 million barrels per day in January and February, while fuel exports rose 74% and imports only 14%. also shows.
Tuesday’s drop was the first drop in oil after five straight gains. Up ~4% last week.
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