© Reuters. An oil pump near Reims, France, in a photo taken on August 24, 2022. Photo: Pascal Rossignol / Reuters.
NEW YORK (Reuters) – Oil prices plunged on Friday as fears of a global recession and weak fuel demand, especially in China, outweighed the support prices found from a significant production cut by the oil. OPEC +.
Brent crude futures fell $ 2.52, or 2.7 percent, to 92.05 a barrel by 1512 GMT, and West Texas Intermediate crude futures fell $ 2.97, or more. 3.3 percent, to $ 86.14 per barrel.
Brent Crude and West Texas Intermediate prices fluctuated between highs and lows for most of the session, but fell 6% and 7% during the week, respectively.
The International Energy Agency lowered its fuel demand forecast for this year and next and warned of a possible global recession.
Core inflation in the US recorded its largest annual increase in 40 years, reinforcing expectations that interest rates will remain high for a longer period with the risk of a global recession. The next US interest rate decision is expected to be made between November 1st and 2nd.
The OPEC + group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and independent oil producers, including Russia, announced last week that it would reduce oil production by two million barrels per day.
The International Energy Agency estimates that the lack of production between the countries of the group means the possibility of reducing production by one million barrels per day.
This decision led to a rift between the group’s de facto leader and the United States.
Oil prices were also supported by a sharp decline in US distillate stocks, although US stocks were higher than expected.
(Prepared by Marwa Salam, Noha Zakaria and Ahmed El-Sayed for the Arabic Bulletin – Edited by Ali Khafaji)
