May 4, 2023 - Economy
Oil prices are down more than 10% this week, amid concern about global growth
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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.
