Oil prices plunge more than 5% as IMF cuts economic growth forecast, sparking demand concerns

London Brent crude oil futures futures fell $5.91, or 5.22 percent, to settle at $107.25 per barrel. In its latest World Economic Outlook report, the IMF said it expects the global economy to grow by 3.6 percent in both 2022 and 2023, down 0.8 and 0.2 percentage points. This is the second time this year that the agency has lowered its forecast. Global growth is expected to decline to about 3.3% in the medium term, compared with an average growth rate of 4.1% from 2004-2013 and 6.1% in 2021.

Earlier data released by the American Petroleum Institute (API) showed that crude oil inventories plunged by 4.496 million barrels, refined oil stocks decreased by 1.652 million barrels, gasoline stocks increased by 2.933 million barrels and Cushing crude oil stocks increased by 93,000 barrels in the week ended April 15. Oil prices rose slightly after the data was released, but still recorded a 4.84% loss by the end of the day.