Rising demand concerns Global oil prices fell to their lowest level since January

Global oil prices extended their decline and slipped to their lowest level since January as heightened concerns about global demand offset any impact
from the EU-dominated cap on Russian oil sales prices pushing up prices.

WTI crude oil prices fell below the $75/barrel mark; Brent crude futures fell below the $80/b psychological mark for the first time
since Jan.
6.

Eli Tesfaye, senior market strategist at RJO Futures, said: "In this market, people's mood is more negative
.
As things stand, we could see WTI
at $60 per barrel.
I think $80 will be the new high, and I would be very surprised
to see a higher price than that.
”

Earlier this week, U.
S.
services data showed a strong U.
S.
economy and boosted expectations
that interest rates would be higher than near-term forecasts.
Following its biggest gain in two weeks on Monday, the dollar index was lower on Tuesday, but was still boosted by bets on a rate hike
.
A stronger dollar makes dollar-denominated oil more expensive for buyers holding other currencies, reducing demand
.

Markets are weighing the impact on production of the $60 per barrel price cap imposed by the G7, the European Union and Australia on Russian crude, which has led to market volatility
.
Matt Smith, Kpler's chief oil analyst, said that so far, there has been "no impact on the flow of crude oil in Russia.
"

"Russia's seaborne exports and production are not declining, and coupled with fears of further rate hikes, crude oil is being swept up in broader market risk aversion
," Smith said.
”

Russia has said it will not sell oil
to anyone who signs the price cap.
Russia's oil and gas condensate production from January to November rose 2.
2 percent from a year earlier to 488 million tonnes, according to Russian Deputy Prime Minister Alexander Nowak, who expects a slight decline in production after the latest sanctions
.

EIA lowered its oil price forecast

The U.
S
.
Energy Information Administration (EIA) released a short-term energy outlook.
Affected by widespread risk aversion, the U.
S
.
Energy Information Administration (EIA) lowered its 2022 and 23 oil price forecasts to $101.
48 and $92.
36, respectively, compared with $102.
13 and $95.
33, respectively.

EIA expects U.
S.
oil production of 11.
87 million b/d in 2022, compared to its previous forecast of 11.
83 million b/d; U.
S.
oil production is expected to be 12.
34 million b/d in 2023, compared with the previous forecast of 12.
31 million b/d; Global oil production is expected to be 99.
98 million b/d in 2022, compared to the previous forecast of 99.
93 million b/d; Global oil production is expected to be 101.
06 million b/d in 2023, compared to the previous forecast of 100.
67 million b/d
.

In this report, EIA is more optimistic
about the US economy.
GDP is expected to grow by 1.
8% in 2022, compared with 1.
7% previously; Growth is expected to be 0.
1% in 2023, after a contraction of 0.
1%.