<p> Oil prices plunged by more than five per cent Tuesday as investors worried about a drop in demand after the International Monetary Fund cut its global growth forecast.</p>.<p>Around 1530 GMT (2100 IST) the price of Brent crude, the main international oil contract, was down 5.4 per cent to $107.11 per barrel, while the main US oil contract, WTI, fell 5.5 per cent to $102.30.</p>.<p>European stocks were all down at close, as traders fretted over the IMF's pessimistic outlook for 2022.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/international/world-news-politics/imf-slashes-global-growth-forecasts-amid-ukraine-crisis-1102088.html" target="_blank">IMF slashes global growth forecasts amid Ukraine crisis</a></strong></p>.<p>The IMF sharply downgraded its 2022 global growth forecast to 3.6 per cent in its latest outlook report Tuesday, 0.8 percentage points lower than its previous estimate in January.</p>.<p>Energy prices are surging, debt levels are rising and shortages remain acute, the IMF noted, as multiple crises including the Ukraine war and coronavirus pandemic fuel an acceleration of inflation.</p>.<p>"The economic effects of the war are spreading far and wide – like seismic waves that emanate from the epicentre of an earthquake," IMF chief economist Pierre-Olivier Gourinchas said in the report.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/economy-business/imf-pegs-fairly-robust-82-india-growth-in-2022-1102093.html" target="_blank">IMF pegs 'fairly robust' 8.2% India growth in 2022</a></strong></p>.<p>The downgrade was sharper for the eurozone, which is now expected to grow by 2.8 per cent instead of 3.9 per cent.</p>.<p>Michael Hewson, chief market analyst at CMC Markets UK, said Tuesday's "sharp decline in oil prices offsets concerns that the start of a renewed Russian offensive on the Donbass region (in the east) could increase the pressure on the EU to look at a complete embargo on Russian oil and gas".</p>.<p>Wall Street was up in late morning trading, with the three major indices reporting rises of more than one per cent, a marked change from Monday when markets were lower over worries about higher interest rates.</p>.<p>Hewson noted that the IMF's cut to the US growth forecast, from 4.0 per cent to 3.7 per cent, was more modest than that to the eurozone.</p>.<p>Asian markets diverged as the region weighed the impact of Covid lockdowns in China, analysts at Charles Schwab investment firm said in a note.</p>.<p>China's economic growth accelerated in the first quarter of the year to 4.8 per cent, official data showed Monday, but the government warned of "significant challenges" ahead.</p>.<p><strong>Check out latest DH videos here</strong></p>
<p> Oil prices plunged by more than five per cent Tuesday as investors worried about a drop in demand after the International Monetary Fund cut its global growth forecast.</p>.<p>Around 1530 GMT (2100 IST) the price of Brent crude, the main international oil contract, was down 5.4 per cent to $107.11 per barrel, while the main US oil contract, WTI, fell 5.5 per cent to $102.30.</p>.<p>European stocks were all down at close, as traders fretted over the IMF's pessimistic outlook for 2022.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/international/world-news-politics/imf-slashes-global-growth-forecasts-amid-ukraine-crisis-1102088.html" target="_blank">IMF slashes global growth forecasts amid Ukraine crisis</a></strong></p>.<p>The IMF sharply downgraded its 2022 global growth forecast to 3.6 per cent in its latest outlook report Tuesday, 0.8 percentage points lower than its previous estimate in January.</p>.<p>Energy prices are surging, debt levels are rising and shortages remain acute, the IMF noted, as multiple crises including the Ukraine war and coronavirus pandemic fuel an acceleration of inflation.</p>.<p>"The economic effects of the war are spreading far and wide – like seismic waves that emanate from the epicentre of an earthquake," IMF chief economist Pierre-Olivier Gourinchas said in the report.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/economy-business/imf-pegs-fairly-robust-82-india-growth-in-2022-1102093.html" target="_blank">IMF pegs 'fairly robust' 8.2% India growth in 2022</a></strong></p>.<p>The downgrade was sharper for the eurozone, which is now expected to grow by 2.8 per cent instead of 3.9 per cent.</p>.<p>Michael Hewson, chief market analyst at CMC Markets UK, said Tuesday's "sharp decline in oil prices offsets concerns that the start of a renewed Russian offensive on the Donbass region (in the east) could increase the pressure on the EU to look at a complete embargo on Russian oil and gas".</p>.<p>Wall Street was up in late morning trading, with the three major indices reporting rises of more than one per cent, a marked change from Monday when markets were lower over worries about higher interest rates.</p>.<p>Hewson noted that the IMF's cut to the US growth forecast, from 4.0 per cent to 3.7 per cent, was more modest than that to the eurozone.</p>.<p>Asian markets diverged as the region weighed the impact of Covid lockdowns in China, analysts at Charles Schwab investment firm said in a note.</p>.<p>China's economic growth accelerated in the first quarter of the year to 4.8 per cent, official data showed Monday, but the government warned of "significant challenges" ahead.</p>.<p><strong>Check out latest DH videos here</strong></p>