Oil prices fall amid fears around global economy

Global oil prices fell on June 16 afternoon by about 2%, markets assess the prospects for economic recovery against the backdrop of high inflation and measures taken in connection with this by world central banks, reported from the auction data.

The price of August futures for Brent crude fell by 1.82% to $116.35 per barrel, July futures for WTI fell by 1.79% to $113.25.

Concerns about high inflation and economic recovery are reflected in expectations for oil demand. World central banks are tightening monetary policy and raising key rates: the US Federal Reserve System (FRS) raised the key rate by 75 basis points, to 1.5-1.75%, and on June 16 the rates were raised by the Central Bank of Switzerland and the UK.

As a result, the dollar appreciates against the euro by 0.4%, against the pound sterling - by 0.2%, and a more expensive dollar makes oil less accessible to investors who own other currencies.

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