Oil extends its losses as growth concerns stoke two-day decline
BNN Bloomberg
Oil extended its drop for a second day as fears of a global slowdown outweighed continued supply disruptions and market tightness.
West Texas Intermediate settled below USUS$100 after trading in a USUS$7 range on Wednesday. The two-day decline comes as concerns over an economic recession, as well as months of dwindling liquidity, undermine the idea of oil being used as a hedge against inflation. Meanwhile, Citigroup Inc.’s Ed Morse said the outlook for oil demand will likely see further downward revisions amid higher fuel prices.
“Almost everybody has reduced their expectations of demand for the year,” Morse said in a Bloomberg Television interview Wednesday.
Oil has opened the third quarter on volatile footing. With central banks, including the Federal Reserve, hiking interest rates to tame inflation, investors have been pricing in the consequences of a slowdown, even as physical crude markets continue to show signs of vigor and Russia’s war in Ukraine drags on.
The federal government announced intentions to raise the inclusion rate on capital gains taxes for corporations and individuals earning beyond a certain threshold, which will impact wealthy individuals who are benefiting from tax advantages not available to middle class Canadians, according to the Budget 2024.