The price of oil has risen slightly, recovering some of the weekly losses. Nevertheless, Crude is headed to close this Friday near its lowest levels since February. The price drop is supported by concerns about a possible recession and, therefore, a drop in fuel demand.
Concerns about the economic downturn have intensified since the Bank of England warned last Thursday of a prolonged recession after it made the decision to raise interest rates to the maximum, which has happened for the first time since 1995.
“Clearly, everyone is taking the threat of recession much more seriously, as we are still seeing a very tight market and growers with no ability to change that.”Craig Erlam, a senior market analyst at Oanda in London, said, according to Archyde.com.
Prices of a barrel of Brent and Texas oil today, August 5: how much does it cost and how much is it quoted?
This Friday, at 1:29 pm ET, US West Texas Intermediate (WTI) crude is up $0.27, or 0.30%, trading at $88.81. Secondly, Brent futures are trading at $94.79 per barrel up 0.67% or $0.71, according to OilPrice.com, a website that offers more than 150 oil indices and blends worldwide.
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Both indices are headed to close the week with lows close to those recorded in February before Russia’s invasion of Ukraine began on February 24. According to Archyde.com, Brent is down around 13% from last Friday’s close, while WTI is down nearly 9%.
Although prices have fallen on concerns about the impact of inflation on economic growth and demand, signs of tight supply can cause the price to rise again. Supply concerns are expected to rise closer to winter as European Union sanctions banning seaborne imports of Russian crude and oil products take effect on December 5.