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12.05.202209:48:00UTC+00Oil Prices Retreat On Growth Concerns

Oil prices fell more than 2 percent on Thursday after posting strong gains the previous day, thanks to data showing a significant drop in flows of Russian gas to Europe.

Benchmark Brent crude futures traded 2.1 percent lower at $105.34 in European trade, while U.S. crude futures were down 2.2 percent at $103.35.

Growth concerns intensified amid worsening geopolitical scenario, tightening of interest rates and signs of prolonged COVID-19 lockdowns in China, the world's top crude importer.

The strongest U.S. dollar in two decades also made dollar-denominated commodities costlier for consumers who use other currencies.

The dollar rose to fresh two-decade highs after the latest U.S. inflation data suggested that Fed officials are likely to stick with their approach of raising rates by a half point at each of their next two-three meetings to tame high-flying inflation.

Analysts say that the global economy is entering a period of recession, or possibly stagflation, a scenario where surging prices are combined with slowing growth.



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