Oil prices began to fall due to fears that the recession in the global economy would hit energy demand.
The world benchmark oil price has fallen sharply on concerns about demand. This was confirmed by trading data on Tuesday, July 5th.
Thus, September Brent futures on the London ICE Futures exchange dropped $ 8.23 (7.25%) to $ 105.27 per barrel.
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The value of WTI futures for August in the electronic session on the New York Mercantile Exchange (NYMEX) dropped $ 6.59 (7.15%) to $ 101.28 per barrel.
Now the spread between the current contracts for Brent and WTI is $ 3.99 in favor of Brent.
Oil prices began to fall on fears that the global economic downturn would hit energy demand, Interfax wrote. A negative factor for the oil market is the data that the composite purchasing managers index (PMI) of 19 eurozone countries, calculated by Markit Economics, fell to 52 points in June from 54.8 points last month. The activity indicator in the money block service sector last month dropped to 53 points from 56.1 points in May.
Citigroup analysts also concluded that the price of oil could fall to $ 65 per barrel by the end of the year in the event of a recession and a drop in demand, Bloomberg wrote.
It was previously reported that the G7 would limit the price of Russia’s oil to its value. The price cap could hit Russia’s revenues by actually lowering energy prices.
Under the US plan, Ukraine’s allies will pay Russia no more than the cost of production for its oil. Russia’s oil continues to flow into world markets, helping the global economy, but the Russian Federation will receive less money for it.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.