Prices are falling in anticipation of rising US interest rates, as well as significant increases in oil inventories.
The world benchmark oil price fell sharply on news from the US. This was confirmed by trading data on Wednesday, July 14th.
Thus, the value of futures for Brent crude for September delivery on the London ICE Futures exchange dropped 4.7% to $ 94.9 per barrel. Brent’s price dropped below $ 95 per barrel for the first time since Feb. 21 this year.
In turn, the futures price for WTI crude for August delivery on the New York Mercantile Exchange dropped 5.6% to $ 90.91 per barrel.
Commodity prices are falling in anticipation of a significant increase in US interest rates. Data on record inflation in the US for more than 40 years has bolstered expectations that the Fed will continue to aggressively raise interest rates. The increase in Fed rates increases the threat of a recession, which could negatively affect demand for Cshmt.
An additional negative for the market is also the increase in US oil reserves. According to the U.S. Department of Energy, the country’s oil reserves rose 3.25 million barrels a week, while analysts expect a decline of 150 thousand barrels. Fuel stocks in the country also rose by 5.8 million barrels, distillate stocks – by 2.7 million barrels.
It will be recalled that last week the price of oil fell below $ 100 on 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.