Crude oil prices have been on a downward trend in the world market for several months. Crude oil prices fell nearly five per cent in a single day on Friday (September 23) to hit an eight-month low in the international market after remaining stable for a few days earlier this week.
According to analysts, oil prices have fallen in the global market as the US dollar has reached its highest level in more than two decades and fears of an economic recession have intensified in many countries of the world.
This information was found in the news agency Reuters report on Saturday (September 24).
Brent, the international crude oil benchmark, fell 4.8 percent, or $4.31 a barrel, to $86.15 on Friday, according to a Reuters report. Brent prices have dropped by about six percent in the last one week.
West Texas Intermediate (WTI), the US oil benchmark, fell 4.8 percent, or $4.75 a barrel, to $78.74. With this, the price of WTI has fallen by about seven percent in a week. With this, the price of both benchmarks fell for the fourth consecutive week. This is the first such incident since December last year. The price of WTI is the lowest since January 10 and brent price has reached the lowest level since January 14. On Friday, the futures price of gasoline (petrol) and diesel in the United States fell by more than five percent.
On Wednesday (September 21), the Us Federal Reserve Bank announced a 75 basis point increase in interest rates. In line with this, other central banks of the world have also increased interest rates. This has once again raised the risk of economic recession.
Edward Moa, a senior market analyst at data and analytics firm Onada, said it seems that central banks are ready to be aggressive in raising interest rates. This will weaken both economic activity and the outlook for short-term demand for crude oil.
John Kildof, a partner at New York-based Again Capital LLC, said the price of the dollar has risen as an explosion and the price of dollar-major commodities such as oil has gone down. In addition, the fear of a global recession is increasing as the central banks have increased interest rates.
JH
