For its part, the barrel West Texas Intermediate (WTI) American for delivery in october it lost 0.5% to $87.31 in London.
The CPI Consumer Price Index “killed the goose that lays the golden eggs” commented Robert Yawger, an analyst at Mizuho.
After reaching its highest level in more than 40 years in June, 9.1%, inflation moderated in July to stand at 8.5% in 12 months. In August, 12-month inflation stood at 8.3% according to data published this Tuesday, which revealed a moderation lower than expected by analysts, a result that hit the markets.
Prior to the release of these inflation data, crude oil prices were clearly heading higher. But they took a brutal turn. “It is a fact that heralds a destruction of demand” for oil, according to the expert.
“Inflation is much more worrying” than expected “and that increases the risk of seeing the Fed (Federal Reserve, US central bank) push the economy into a recession,” said Edward Moya, an analyst at Oanda, referring to to the sharp increases in interest rates resolved by the agency to combat the rise in prices.
On the other hand, the threat persists that Opec and its partners within the Opec+ alliance will reduce their production again to stop the fall in price, another weight factor for the market.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
