Oil prices fell today, Friday, on fears of a global recession and weak demand for fuel. Brent crude futures tumbled $2.52, or 2.7 percent, to $92.05 a barrel, and West Texas Intermediate crude was $2.97, or 3.3. percent to $86.14 a barrel.
Sharjah 24 – Archyde.com:
Oil prices tumbled, today, Friday, as fears of a global recession, as well as weak demand for fuel, especially in China, outweighed the support that prices found from a significant reduction in “OPEC +” production.
Brent crude futures fell $2.52, or 2.7 percent, to $92.05 a barrel, and West Texas Intermediate crude futures fell $2.97, or 3.3 percent, to $86.14 a barrel.
Brent and West Texas Intermediate crude prices fluctuated between rising and falling, but they fell during the week by 6% and 7%, respectively.
The International Energy Agency lowered its forecast for fuel demand for the current and next years, and warned of a possible global recession.
Core inflation in the United States 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 decision on the US interest rate is scheduled to take place between the first and second of November.
The “OPEC +” group, which includes the Organization of the Petroleum Exporting Countries “OPEC” and independent oil producers, including Russia, announced last week to reduce oil production by two million barrels per day.
Estimates of the International Energy Agency indicate that the lack of production among the countries of the group means the possibility of reducing production by one million barrels per day.
Oil prices were also supported by a sharp decline in US distillate inventories, although US crude oil inventories are larger than expected.