Commodity prices are falling. A barrel (159 liters) of North Sea Brent fell by more than eleven US dollars to 102.12 dollars.
Oil prices were weighed heavily on Tuesday by mounting fears of a recession. A barrel (159 liters) of North Sea Brent fell by more than eleven US dollars to 102.12 dollars. That was the lowest level since mid-May.
The price of a barrel of US West Texas Intermediate (WTI) brews fell by a similar amount, dipping below $100. The low was $98.44.
Most recently, the Brent price was $103.19. That was $10.31 less than the day before. A barrel of WTI cost $99.31 in the evening, down $9.12 from the day before.
Concern about the development of the world economy
Concerns about the development of the global economy have weighed on oil prices in the past few days. High inflation and interest rate hikes by many central banks are likely to dampen economic development and thus also cause demand for crude oil to fall. Oil prices have therefore fallen in recent weeks – albeit from a high level. Prices have risen by around 30 percent since the beginning of the year. The main reason is Russia’s war against Ukraine.
In the event of a global recession, the experts at Citigroup believe that the price of oil could fall to $65 by the end of the year. By the end of 2023, it could even drop to $45. According to a study, this applies despite ongoing European sanctions against Russian crude oil, which should tend to support prices.
A strike began in the Norwegian oil and gas industry on Tuesday. Collective bargaining has remained without agreement. This should reduce oil and natural gas production. The strike had already become apparent in the past few days.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
