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They dropped to their lowest levels in about a month, although they remained high overall. In the afternoon, a barrel (159 liters) of North Sea Brent cost US $ 110.03. It was $ 4.62 less than the day before. The price of a barrel of the US West Texas Intermediate (WTI) variety fell $ 5.02 to $ 104.50.
In the market, growing fear of recession was cited as the reason for Rohl’s price cut. One of the triggers is the determined fight by many central banks against high inflation. The focus is on the US central bank, the Fed monetary policy recently exacerbated by an unusually significant increase in interest rates of 0.75 points.
Fed Chairman Jerome Powell makes his regular appearance before the United States Senate in the middle of the week. Federal Finance Minister Christian Lindner is also worried: “There is a risk of a very serious economic crisis due to the sharp rise in energy prices, problems in the supply chain, and inflation”.
Commerzbank analyst Carsten Fritsch also references the upcoming meeting between US President Joe Biden and US oil industry representatives on Thursday. Biden accused refineries last week of producing too little gasoline. “Apparently a number of market participants assume that the oil industry will prove docile and that the supply of gasoline will increase significantly,” writes Fritsch. However, this is unlikely to be possible due to the limited free processing capabilities.
Despite the recent discounts, oil prices are at a high level. They are currently a good 40 percent more than at the start of the year. The main reasons are Russia’s war against Ukraine and severe sanctions, mainly by Western countries. Russia is one of the world’s largest oil suppliers.
/ jsl / bgf / stk
NEW YORK / LONDON (dpa-AFX)
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