Continued Oil prices fell today, ThursdayAs it fell more than 2%, investors reevaluated the risk of recession and demand for fuel, with major economies raising interest rates.
Brent crude was down $ 2.5 or 2.3 percent at $ 109.22 a barrel.
According to Reuters, the median crude futures for West Texas in the US fell $ 2.6 or 2.7 percent to $ 103.46 a barrel.
After falling nearly 3% in the previous session, benchmark crude traded lower to $ 3 a barrel in early Asian trade.
Both are at their lowest level since mid-May.
While trying to control inflation by raising interest rates, central banks continue to appreciate how much investors need to worry about the possibility of pushing the global economy into recession.
“Oil markets were under pressure as investors worried that raising US interest rates would destabilize the economy and weaken fuel demand,” said Kazuhiko Saito, chief analyst at Fujidomi Securities.
For his part, the head of the Federal Reserve (US Federal Reserve), Jerome Powell, said on Wednesday that the bank was not trying to contain the recession as it tried to control inflation, but was fully committed to keeping prices in check. This raises the risk of recession.
“The supply side may see a larger-than-expected increase as more information emerges that proves that Russian crude supplies are less affected by sanctions than most people previously thought,” Haidong Futures analysts wrote.
Russian President Vladimir Putin said on Wednesday that Moscow was changing the course of trade and oil exports to countries from the BRICS group of emerging economies due to Western sanctions.
In May, China’s Russian crude oil imports rose by a record 55 percent over the previous year.
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