The reason for the drop in prices is concern over the prospects for energy demand against the backdrop of an expected downturn in the global economy.
World oil prices fell significantly for a third day and were at their lowest level since the end of March. This was confirmed by trading data on Wednesday, May 3.
Thus, Brent crude for July delivery on the London ICE Futures exchange today fell another $2.17 (-2.88%) to $73.15 per barrel. The price fell below $74 per barrel for the first time since March 24 of this year, that is, for more than a month.
In turn, futures for WTI crude for June delivery on the New York Mercantile Exchange fell $2.21 (-3.08%) to $69.45 a barrel. WTI is trading below $70 a barrel for the first time since March 27.
As you know, the price of oil is falling for the third day in a row. The reason for the decline was concern over the prospects for energy demand against the backdrop of an expected downturn in the global economy. In particular, investors’ fears were caused by weak macroeconomic statistics related to the United States on the eve of the Fed’s decision on the rate, writes Bloomberg. The US Federal Reserve is expected to raise rates by 25 bp today. up to 5-5.25% per year. Further tightening of monetary policy in Western countries could slow economic growth and negatively affect energy demand.
The reason for the sharp drop in prices could also be the message that production in Iran has reached 3 million barrels per day.
It will be remembered that a week ago, the price of oil dropped below $80. Then it came on the back of weak data on US stocks, sparking fears of a recession in the world’s largest economy.
Source: korrespondent
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