Instability in the Middle East keeps investors in suspense, but estimates of a drop in demand pushed prices down.
The prices of Petroleum fell this Tuesday, amid concerns of lower demand due to fears of recession, and possible supply problems linked to the conflict in the Middle East as China showed some signs of economic recovery.
The Brent crude oil futures fell 1.46% and stood at $82.34, while US crude oil West Texas Intermediate (WTI) for delivery in March fell 1.27% to $78.18 a barrel.
“Current geopolitical concerns cannot sustain the market,” summarized analysts at Energi Danmark and added: “Persistent fears of a new recession were resurfaced by disappointing key figures in China and the United States in the last times”.
The decline in crude oil is due to the fall in gasoline and diesel prices, he highlighted Andy Lipow, of Lipow Oil Associates, while highlighting that the weather is benevolent for this time in the United States, which reduced the demand for fuel.
The conflict in the Middle East and the situation in China
Houthi rebels Yemenaligned with Irancontinued their aggressions against the maritime routes in the Red Sea and the Bab al-Mandab Straitwith at least four more ships hit by drone and missile attacks since Friday.
One of them, the freighter RubymarBelizean-flagged, British-registered and Lebanese-run, in the Gulf of Aden, was in danger of sinking, the Houthis said, raising the stakes in their campaign to disrupt global shipping in solidarity with the Palestinians of Loop.
Tourism income in China increased 47.3% year-on-year and exceeded levels prior to the Covid-19 pandemic during the national holidays of Lunar New Yearwhich ended on Saturday.
China It also cut the benchmark mortgage rate on Tuesday in a bid to shore up its troubled housing market and economy.
Source: Ambito
