The price of a barrel of Brent North Sea for September delivery fell 7.10% to settle at US$99.49, the first time it has fallen below the US$100 mark in about three months.
The price of oil fell on Tuesday amid concerns that a global recession could cripple demand, while several signs suggest markets will continue to experience turmoil for some time.
The price of a barrel of Brent North Sea for September delivery fell 7.10% to settle at US$99.49, the first time it has fallen below the US$100 mark in about three months.
The price of a barrel of the American variety West Texas Intermediate (WTI) for delivery in August closed in parallel with a decrease of 7.92%, at 95.84 dollars.
“Oil is in freefall” and may continue to fall “as the growth outlook worsens” and magnifies concerns about demand, concluded Craig Erlam, an analyst at Oanda.
“In the West, the combination of high energy prices and rising interest rates is fueling fears of a recession that would have a serious impact” on the black gold market, lamented Commerzbank analyst Carsten Fritz.
The new wave of restrictive measures in China due to the new coronavirus pandemic in China adds to the concerns of investors, who fear new lockdowns.
RES-EMP
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