Oil closes lower on monetary policy concerns, Brent below $83

Oil prices declined today, Feb. 27, amid concerns over the tightening of US monetary policy and despite hopes for a recovery in demand from China.

Investors fear that the Federal Reserve will continue to raise interest rates to control inflation, which threatens to hurt the economy and US demand for crude.

Goldman Sachs said that the oil market may record a supply deficit by the second half of this year, which may push OPEC+ to reconsider its policy of cutting production in June.

The bank, however, lowered its forecast on Brent crude to $90 a barrel in Q2 2023, from its previous estimate of $105.

Meanwhile, Vitol CEO Russell Hardy said in an interview with Bloomberg that oil prices would rise to $100 a barrel later in the year, with growing consumption and weak supply.

Brent crude futures for April delivery fell 0.8%, or 71 cents, to settle at $82.45 a barrel.

West Texas Intermediate (WTI) crude for April delivery fell 0.8%, or 64 cents, to $75.68 a barrel.