2021.05.1310:21:00UTC+00Oil Prices Tumble On Inflation Worries

Oil prices fell sharply on Thursday as inflation fears dented hopes for economic recovery.

Overnight data showed that the U.S. annual inflation rate jumped to the highest in 13 years and well above forecasts, raising concerns of a tighter monetary policy and its impact on the global growth outlook.

Meanwhile, concerns over a disruption in the supply chain eased after the Colonial Pipeline Company announced that it was restarting pipeline operations and that the supply chain would "return to normal" within the next several days.

Brent futures for July settlement plunged 2.5 percent to $67.56 per barrel, while WTI crude oil futures for June delivery were down 2.7 percent at $64.29 amid broad-based risk aversion in financial markets.

As inflation worries mount, China Premier Li Keqiang urged the country to deal effectively with the commodity price surge and its impact, according to a state television report.

The International Energy Agency (IEA) on Wednesday cut its global crude oil demand growth expectations for 2021, saying that the coronavirus crisis in many parts of Asia, particularly India, has clouded the outlook for consumption.