World oil prices fall after forecasts on China's 2023 GDP

World oil prices fell on Monday morning, Report informs.

Investors focused on the forecasts for China's 2023 GDP, which turned out to be weaker than expected.

The price of May futures for Brent crude fell by 0.84% to $85.11 per barrel, and April futures for WTI dropped by 0.89% to $78.97.

The Chinese authorities on Sunday estimated the country's 2023 GDP growth at 5%, weaker than market expectations. At the same time, in 2022, the GDP grew by 3% against the forecast of 5.5%. The PRC is one of the world's largest consumers and importers of oil, so economic forecasts affect demand prospects.

The monetary policy of the US Federal Reserve System (Fed) remains another critical factor for the markets. The head of the regulator, Jerome Powell, will make an address this week. Markets expect to hear hints about the regulator's plans regarding the key rate.

Analysts believe the Fed will continue the rate hike cycle against persistently high inflation. Tightening monetary policy increases the risks of a recession, which could hit oil demand. Also, the increase in the rate traditionally supports the dollar, which constrains the demand for commodities.