Oil prices fall 2% due to weak economic data from China and the US

Los oil prices They fell about 2% to a week’s low on Thursday as the political standoff over the US debt ceiling fueled fears of a recession in the world’s biggest oil consumer.

A rise in US jobless claims and weak Chinese economic data also weighed on investors. energy prices.

crude oil futures Brent fell $1.43, or 1.9%, to $74.98 a barrel, while crude West Texas Intermediate (WTI) was down $1.69, or 2.3%, at $70.87. They were the lowest closures since May 4.

The dollar reached its highest level since May 1 against a basket of currencies, after data on US jobless claims reinforced the idea that the Federal Reserve (Fed) will curb interest rate hikes, but not expectations of rate cuts at the end of the year.

A stronger greenback makes oil more expensive in other countries. Rising interest rates may influence demand for oil by raising the cost of borrowing and putting pressure on economic growth.

US Treasury Secretary, Janet Yellenurged Congress to raise the federal debt limit to $31.4 trillion and avoid an unprecedented default that would trigger a global economic recession.

Maintaining pressure on oil prices, US stock indices Dow Jones y S&P 500 fell after the latest problems of the Californian bank PacWest Bancorp caused another fall in the regional banking sector.

Minneapolis Federal Reserve Chairman Neel Kashkari said a long period of high interest rates could add to the pressure on banks, but would be necessary if inflation holds up.

kg