An important negative factor for market participants is the strengthening of the US dollar.
The benchmark world oil price has fallen sharply on the prospects of falling demand for raw materials. This was confirmed by trading data on the night of Tuesday, July 12th.
So, at 22:30 Kyiv time, September futures for Brent on the London ICE Futures exchange dropped $ 8.15 (7.61%) to $ 98.95 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 $ 8.67 (8.33%) to $ 95.42 per barrel.
Now the spread between the current contracts for Brent and WTI is $ 3.53 in favor of Brent.
According to market analysts, “black gold” is becoming cheaper for many reasons. These include the decline in demand due to the deteriorating epidemiological situation in China. The country’s authorities are recording an increase in new cases of COVID-19 diseases and are stepping up quarantine measures to prevent the spread of the infection.
Another important negative factor for market participants is the strengthening of the US dollar. The American currency is actively rising in price and on the eve reached equality with the euro with the flight of investors to protective assets for fear of a recession in the world. The more expensive the dollar, the more unprofitable oil deals become for traders who use other currencies.
In addition, the negative impact on oil quotes continues to fear a global recession due to the aggressive actions of the world’s central banks.
It will be recalled that last week the price of oil also dropped below $ 100 due to fears of recession in the global economy.
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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.