Crude oil hit its lowest level since January during the session due to fears of a recession in the United States and despite rising tensions in the Middle East.
The oil prices fell almost 1% this Monday and are at the lowest level since last January due to fears that a US recession and Despite the increase in tension in the Middle East.
He WTI crude oil falls off 0.9% to $72.83 per barrelMeanwhile he Brent back off 0.7% to 76.25 Dollars, although it came to yield up to the 75.05 Dollarsits lowest price since January.
Oil prices are falling: why is it falling despite rising tensions in the Middle East?
The employment data and industrial activity published last week in the United States showed a slowdown of the leading economyas well as the drop in diesel consumption in Chinathe world’s largest contributor to demand growth Petroleum, It is also affecting oil.
These indicators generated great fear and caused investors to abandon risk assets, while betting that rapid interest rate cuts will be necessary to boost the economic growth.
The price of crude oil is falling despite Iran’s reiteration on Monday that “it is necessary to punish Israel” following the assassination of the political leader of the Palestinian Islamist movement Hamas, Ismail Haniyeh.
OPEC+ pressure
Oil is also under pressure from the decision of the group of producers OPEC+ to maintain its plan to phase out voluntary production cuts starting in October, meaning supplies will rise later this year, analysts say.
OPEC oil output rose in July despite the group’s production cuts, a Reuters poll showed on Friday.
Source: Ambito
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