Marti, 02 August 2022, 7:23 am
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3225 readings
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The price drop was caused by the pessimistic outlook for global economic growth, as well as the announced meeting this week of OPEC and its allies on supply.
Brent crude futures were down $4.10, or 3.9%, at $99.87 a barrel by 17:19 GMT (20:19 Romanian time), after hitting a low of the session of $99.09 per barrel.
The price of US West Texas Intermediate (WTI) crude fell $4.93, or 5%, to $93.69 a barrel, after a low of $92.42 a barrel.
A drop in the price of Brent oil below the support level of $102.68 could trigger a decline in a range of $99.52 to $101.26, said Reuters technical analyst Wang Tao.
Factories in the United States, Europe and Asia saw production decline in July as weak global demand and China’s strict Covid-19 restrictions slowed output, surveys showed on Monday, raising fears that the economies will enter recession.
Brent and WTI crude ended July with a second straight monthly loss for the first time since 2020, as rising inflation and higher interest rates raised fears of a recession that would erode demand for combustible.
Analysts in a Reuters poll cut their forecast for average Brent oil prices in 2022 to $105.75 a barrel, their first downward revision since April.
Their estimate for WTI oil fell to $101.28 a barrel.
However, questions about the global supply are looming on the oil market.
“There is still a disconnect between economic data and what we see from the supply side. The oil market is still very tight, and the market will be tense in anticipation of the OPEC meeting,” said Phil Flynn, analyst at the Price Futures group.
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