Oil was down Wednesday morning in Asia after its mixed finish in the previous session. Coal and natural gas prices continue to soar in markets such as China, India, and Europe, fueling concerns of rising inflation and slower global growth that could reduce fuel demand.
Brent oil futures were down 0.36% to $83.12 by 11:50 PM ET (3:50 AM GMT) extending a 23-cent loss on Tuesday. WTI Futures fell 0.38% to $80.33 after gaining 12 cents the day before. Both Brent and WTI futures remained above the $80 mark.
The dollar, which edged down on Wednesday but remained near a one-year high, also weighed on the black liquid.
The International Monetary Fund (IMF) on Tuesday cut its growth outlooks for the U.S. and other major economies over concerns that supply chain disruptions and cost pressures are causing a delay in the global economic recovery from COVID-19.
The IMF's concern that "momentum has weakened and uncertainty has increased,” was also highlighted by Commonwealth Bank analysts.
However, investors are still waiting to see if soaring gas and coal prices will lead to more demand for oil products for power generation.
"There are growing expectations that the high prices for gas and thermal coal are likely to boost demand for alternative fuels such as diesel and fuel oil," ANZ Research analysts said in a note.
U.S. crude oil supply data from the American Petroleum Institute will be released later in the day, followed by data from the U.S. Energy Information Administration on Thursday. Investing.com