London – Oil prices continued to fall today amid concerns about demand driven by high inflation, rising interest rates and new measures to combat the spread of the coronavirus in China. The price of Brent North Sea oil lost 2.8 percent shortly after 17:00 CEST and fell below 93 dollars per barrel. U.S. West Texas Intermediate (WTI) crude fell nearly three percent to below $87 a barrel.
Oil prices are falling for the third day in a row. “Demand for oil in the Western world and in China is stagnating, while supplies are gradually increasing, mainly thanks to the boom in shale production in the US,” said Norbert Rücker, an analyst at Julius Baer, according to Reuters.
Investors are worried about a slowdown in the global economy, which would undermine demand for oil. Economic activity in the United States and Europe is now being hampered by high inflation and interest rate hikes by central banks to combat the rapid rise in consumer prices. In addition, economic activity in China is undermined by the country’s policy of zero tolerance towards the coronavirus, the consequence of which is the introduction of extensive restrictions on the movement of residents.
The U.S. government’s Energy Information Administration (EIA) reported on Wednesday that U.S. crude output rose 1.7 percent month-on-month to 11.8 million barrels per day in June, the highest level since April 2020. A Reuters report on Wednesday, which based on crude oil shipping data and information from industry sources, it also showed that OPEC production rose 2.4 percent to 29.58 million barrels per day in August, also the highest level since April 2020.
Oil prices in dollars per barrel (about 159 liters):
|STOCK EXCHANGE||TYPE||CONTRACT||ACTUAL PRICE||PRELIMINARY CONCLUSION|
|London – ICE||Brent||November||92.94||95.64|
|New York – NYMEX||WTI||October||86.90||89.55|
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