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May 4, 2023 - Economy

Oil prices are down more than 10% this week, amid concern about global growth

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U.S. West Texas Intermediate crude oil futures
Data: Factset; Chart: Axios Visuals

U.S. oil prices fell more than 4% to less than $69 a barrel on Wednesday, amid what seems to be growing concern about the outlook for global growth.

Why it matters: Oil is a key input into the world economy. Big price moves for crude can signal a shift in investor expectations.

  • A downturn in oil prices may mean they expect the economy to weaken.

What they're saying: "Investors seem to be getting increasingly nervous about the macro outlook and its implications for oil demand," ING analysts wrote in a client note Tuesday.

  • Prices are down more than 10% this week.

Between the lines: Basically, investors think China's recovery from its disastrous Zero-COVID policies has been pretty lackluster.

  • At the same time, they think banking jitters could crimp U.S. growth.

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