Global oil prices fell $2 a barrel, hitting a two-week low, on concerns that recent economic data could lead to more aggressive interest rate hikes by central banks, which would ultimately hurt economic growth and fuel demand.

World oil prices today
 
Here is some important information related to the decline in world oil prices and its impact on inflation risk and demand:
 
Oil Price Drop
 
Brent crude futures and West Texas Intermediate (WTI) crude futures hit their lowest levels since Feb. 6. If current levels hold, it would be the biggest daily drop for Brent since Jan. 4. WTI is also on track for its biggest drop since Feb. 3.
 
Aggressive Interest Rate Hikes
 
A majority of U.S. Federal Reserve officials agree that the risk of high inflation remains a “key factor” in shaping monetary policy and warrants continued interest rate hikes until they are contained. More aggressive rate hikes could hurt economic growth and fuel demand.
 
Impact on Fuel Demand
 
A massive snowstorm across the U.S. Northern Plains and Upper Midwest has hit fuel demand, with 3,500 flights delayed or canceled across the country. A rise in U.S. crude inventories has also added to demand concerns. U.S. gasoline futures fell nearly 4% to their lowest in two weeks.

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Impact on Inflation
 
Penurunan harga minyak dapat menurunkan biaya produksi, yang pada akhirnya dapat mengurangi inflasi. Namun, kebijakan moneter yang agresif untuk menangani risiko inflasi dapat memperlambat pertumbuhan ekonomi, sehingga dapat mempengaruhi inflasi secara negatif.

also read :

WTI Crude Oil Drops for Third Straight Day as US Dollar Strengthens
 

Russia's Efforts to Support Oil Prices

Russia plans to cut crude exports from western ports in March by about 25% from February, which could provide some support for oil prices.

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The decline in oil prices could trigger concerns about inflation risks and demand. More aggressive interest rate hikes could suppress economic growth and fuel demand. However, Russia's efforts to reduce crude oil exports could provide some support for global oil prices.