Investing.com - Oil prices traded slightly lower on Wednesday, as traders feared the IMF’s decision to cut global economic forecasts for 2018 and 2019 could temper demand for oil.
The fund said in its updated World Economic Outlook that it was now predicting a 3.7% growth, down from the 3.9% growth it forecasted in July. It was the first downgrade since July 2016.
Crude Oil WTI Futures for November delivery slipped 0.2% to $74.74 a barrel by 1:45AM ET (05:45 GMT) on the New York Mercantile Exchange, while London’s Intercontinental Exchange showed that Brent Oil Futures for December delivery also traded 0.1% lower to $84.89 per barrel.
Oil prices gained in the previous session on worries of a hurricane swirling toward the oil-rich U.S. Gulf Coast.
Companies operating in the Gulf shut down nearly 20% of their oil production as Hurricane Michael approached the region, where it was expected to make landfall on Wednesday as a Category 3 storm.
According to forecasts by various weather services, Michael could deliver the most powerful strike in at least a decade on the Panhandle, a 200-mile strip on northwest Florida that’s home to the state’s largest crude and natural gas fields. The Panhandle previously took direct hits from Hurricane Ivan in 2004 and Hurricane Dennis in 2005.
Data from the American Petroleum Institute and U.S. Energy Information Administration on crude inventories will be delayed by one day this week due to Monday's U.S. Columbus Day holiday.