The energy crisis in Europe began after the application of sanctions against Russia, which is causing significant damage to its economy.
In the same line as the gas, Oil prices fell sharply on Monday and US WTI fell below the symbolic level of 90 dollars after disappointing data on the Chinese economy and the possibility of an agreement with Iran on its nuclear program.
The London, the barrel of Brent from the North Sea for delivery in October lost 3.10%, to settle at 95.10 dollars.
Meanwhile, in New York, the West Texas Intermediate (WTI) for delivery in September fell to $89.41, with a loss of 2.91%.
A deal on Iran’s nuclear program could end oil sanctions on the Islamic republic. “At a time when OPEC moderates its production increases, Iran is a key part of the supply”, Aditya Saraswat, from Rystad, explained to AFP.
In turn, in China, two indicators showed that the world’s second largest economy, a major consumer of crude produced in the world, is in a delicate moment. In July, retail sales and industrial production fell, due to a rebound in the coronavirus and a housing crisis. The Chinese central bank decided to lower its rates to support the economy.
This weakness in the Chinese economy “is weighing on oil, and there is little chance of a rebound in the short term,” summarized Bjarne Schieldrop, an analyst at SEB, in a note. It is “pretty clear that sluggish Chinese demand explains the decline in oil prices since June,” he added.
Prices fell 20% in two and a half months, after soaring after the Russian invasion of Ukraine.
Source: Ambito
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