London – The price of Brent oil falls after two days of growth. Concerns about weaker demand and further interest rate hikes returned to the market. These outweighed the first reduction in production by the OPEC+ group since 2020. American oil, on the other hand, is strengthening. Technical factors are to blame, including the fact that Monday was a public holiday in the US. However, US oil remains close to multi-month lows.
Around 6:05 p.m. CET, the price of North Sea Brent crude fell by 2.1 percent to $93.75 per barrel. U.S. WTI crude was up 0.9 percent at $87.68 a barrel at the same time.
Markets fear that high inflation and rising interest rates will hurt demand. The European Central Bank’s monetary committee meets on Thursday and is widely expected to raise interest rates sharply. Fears of weaker demand are also supporting the extension of coronavirus restrictions in China.
After the OPEC+ meeting, the market temporarily shifted its focus again to economic and inflationary factors, said PVM broker Tamas Varga. According to him, these factors undoubtedly raise concerns about a drop in demand.
Oil prices are also being pressured by a stronger dollar, which strengthened today in response to a report on activity in the US services sector. Activity data is raising expectations that the US central bank (Fed) will continue to raise interest rates, which could trigger a recession and reduce demand for fuel, Reuters wrote.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, will cut production by 100,000 barrels a day from October, which represents 0.1 percent of global demand. The group, known as OPEC+, also agreed on Monday that it could meet if necessary at any time before its regular meeting on October 5 to decide on a change in output.
Oil prices in dollars per barrel (about 159 liters):
|STOCK EXCHANGE||TYPE||CONTRACT||ACTUAL PRICE||PRELIMINARY CONCLUSION|
|London – ICE||Brent||November||93.75||95.74|
|New York – NYMEX||WTI||October||87.68||86,87|
World exchange oil chemistry prices