Global oil prices fell during trading today, Tuesday, with increasing investor concerns about demand for crude from China, the second largest economy in the world, after lower-than-expected interest rates on lending were cut, while the dollar index fell against the rise of gold, amid anticipation for any developments. Powell, President of the US Federal Reserve, before Congress.
And by 07:50 am GMT, Brent oil fell 0.4%, to reach $71.36 per barrel, and US crude fell by 0.13%, reaching $76.16 per barrel.
Investors are worried about China, as the government met last week to discuss measures to stimulate economic growth, and many major banks cut their economic growth forecasts for 2023 amid fears that the post-Covid-19 recovery will stall.
With the world's second-largest economy still losing momentum in the post-pandemic era, China today cut two of its benchmark lending rates - the key rate for one-year and five-year loans - by ten basis points each.
The cut is the first in 10 months and less sharp than expectations, which had estimated a cut of about 15 basis points on the five-year lending rate.
The downgrade came after recent economic data showed that the retail and factory sectors were struggling to maintain the momentum achieved earlier in the year.
At the same hour of today's trading, and after the interest rate reduction in China, the global gold price rose by 0.11%, equivalent to $2.24, bringing the price of one ounce to $1952.88.
On the other hand, the US dollar index fell by 0.03%, to reach 102.50 points at the same hour of today's trading.
It is noteworthy that the US market will not start trading this week until today, Tuesday, due to the Freedom Day holiday on Monday.
This week, the testimony of the US Federal Reserve Chairman, Jerome Powell, will occupy the first place among the most important economic events this week, as it will be on Wednesday before the Congressional Financial Services Authority, to be presented on Thursday before the Senate Banking Committee.
This testimony takes place at a semi-annual rate so that members of Congress can interrogate and discuss the US Federal Reserve President in America's monetary policy, fears of recession and unemployment, and discuss the policies of the US Federal Bank.
Fed Governors Lisa Cook and Philip Jefferson will also be on Capitol Hill this week for confirmation hearings before the Senate.
