• Oil prices have fallen on Wednesday
• This is due to supply chain destructions and inflation risks as a result of COVID-19
• The pandemic has adversely shattered international and domestic markets
Oil prices on the global market fell on Wednesday, October 13, 2021, Reuters has reported.
This move was based on concerns that oil demand growth will fall as major economies were experiencing supply chain disruptions and inflation risks.
According to the portal, Brent crude futures fell 24 cents, or 0.2%, to $83.18 a barrel at 0830 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 23 cents or 0.2% to $80.41 a barrel.
“Both contracts pared losses after falling as much as 70 cents earlier when China, the world’s biggest crude importer, released data showing September imports fell 15% from a year earlier,” it added.
Meanwhile, prices for power generation such as natural gas and coal have been surging in some major economies.
Also, the International Monetary Fund has trimmed down economic growth outlooks for the major industrial nations.
The IMF in its latest World Economic Outlook report cut growth forecasts from 6.0 percent to 5.9 percent for 2021.
It explained the move was attributed to the persistent disruptions in the supply chain and inflation pressures constraining the global economy’s recovery from the impacts COVID-19 pandemic.
“This modest headline revision, however, masks large downgrades for some countries and the worsening pandemic dynamics have darkened the outlook for low-income developing economies, while wealthy countries are struggling with supply disruptions,” Gita Gopinath, IMF’s chief economist said.
The IMF also added it is growing more concerned about persistent inflation risk to recovery and called on central banks to act precisely.