Saturday, October 15, 2022, 10:39 am
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Oil prices fell more than 3% on Friday as fears of a global recession and weak demand for oil, particularly in China, outweighed the support provided by a significant reduction in the OPEC + production target.
Brent crude futures fell $ 2.94, or 3.1%, to $ 91.63 a barrel, while US West Texas Intermediate (WTI) crude futures fell $ 3.50 or 3%. , 9%, up to $ 85.61 a barrel.
Brent and WTI contracts fluctuated between positive and negative territory for much of Friday, but fell 6.4% and 7.6% for the whole week, respectively.
Core inflation in the US has seen its largest annual increase in 40 years, reinforcing the idea that interest rates will stay high longer, with the risk of a global recession.
The next US interest rate decision will take place from November 1st to November 2nd.
US consumer confidence continued to improve steadily in October, but household inflation expectations worsened slightly, according to a survey. The improvement in consumer confidence “is seen as negative because it means that the Fed has to reduce consumer confidence and slow the economy more, and this has caused an appreciation of the dollar and downward pressure on the oil market,” said Phil Flynn, an analyst at Price Futures Group of Chicago.
The US dollar index was up around 0.8% on Friday. A stronger dollar reduces the demand for oil, making fuel more expensive for buyers using other currencies.
