August 15, 2022

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Oil prices fell for the second week in a row

Oil prices fell for the second week in a row

LONDON (Reuters) – Crude oil prices rose more than $ 1 a barrel on Friday as crude oil fell for a second week on concerns that higher interest rates could push the global economy into recession. Federal Reserve Chairman Jerome Powell said on Thursday that the central bank’s focus on controlling inflation was “unconditional”, adding to concerns about rising interest rates, which could weigh on financial markets. Brent crude was up $ 1.42 or 1.3 percent at $ 111.47 a barrel at 09:52 GMT, while US West Texas Intermediate crude was up $ 1.29 or 1.2 percent at $ 105.56. The benchmark is heading for a decline in the second week. While demand is recovering from the Kovit-19 epidemic, Russia-Ukraine war widened the supply deficit and hit in 2008, pushing oil prices to an all-time high of $ 147 a barrel this year. Libya, a member of the Organization of the Petroleum Exporting Countries, has been backing crude oil since production was halted almost completely due to unrest. On Thursday, Libyan Oil Minister Mohamed Aun said the head of the National Oil Corporation had withheld production data from him, raising doubts about figures he had released last week. Stephen Brenak, of BVM Oil Brokerage, said the recession was dominating sentiment, adding that “However, there is still a consensus that the oil market will see higher demand and tight supply during the summer months to contain the downturn.” OPEC and its affiliates are expected to meet in the OPEC Plus Group on June 30 and are expected to adhere to an earlier plan to accelerate small increases in oil production in July and August, instead of paying more crude. The latest data on U.S. oil reserves, which provide a glimpse of tight supply to the largest energy consumers, has been postponed to next week.

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