Oil prices fell significantly on Tuesday. In the evening, the price per barrel of raw material on the US market was below one hundred dollars. There are increasing fears in the markets that the economic slowdown will result in a decline in demand for petroleum products.
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WTI oil barrel is cheaper on Tuesday before 21 o’clock by 10.22 percent. up to 99.28 USD / b. According to Bloomberg data, it is valued below USD 100 / b. for the first time since May.
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Brent is losing 9.62% of global recession fears. up to approx. 102.58 USD / b.
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Crude Oil Prices Down
Consulting firm Ritterbusch and Associates explains that these declines are due to concerns about “a high likelihood of a recession when subdued oil demand is already noticeable.” Citi analysts, however, forecast that Brent oil price it could drop to $ 65 by the end of this year if the economy goes into recession.
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CNBC recalls that oil prices have risen since the invasion Russia to Ukraine, which sparked fears of global gas shortages. Russia is one of the key oil exporters, especially to Europe.
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The price of WTI crude oil rose to USD 130.50 a barrel in March, while Brent crude oil approached the level of USD 140 a barrel. These were the highest price levels in 2008. High commodity prices contributed significantly to the surge inflationwhich in many countries is the highest for several dozen years.
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Despite the current visible declines, some experts say oil prices are likely to remain elevated.
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– Recessions do not have great achievements in killing demand. Commodity stocks are at a critically low level, which could also mean that restocking will keep oil demand strong, Bart Melek, head of commodity strategy at TD Securities said on Tuesday.
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photo-source">Main photo source: Shutterstock
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