Thus, the price of December futures for Brent crude fell by 2.14%, to $94.13 per barrel, November futures for WTI - by 2.41%, to $88.93. In the morning, oil prices fell by an average of 0.5%.
Oil is trading lower on fresh demand concerns. Market risk has been heightened once again on fears that the global economy, including the US, will face a very challenging 2023, Saxo Bank’s head of commodities strategy Ole Hansen told Bloomberg.
10:28
Global oil prices fell on October 11 morning, Report informs referring to the auction data.
The price of December futures for Brent crude fell by 0.43% to $95.78 per barrel, November futures for WTI dropped by 0.57% to $90.61
Last week, Brent oil rose by 11.3%, and WTI grew by 16.5% on expectations of a reduction in supply, as OPEC+ decided to cut oil production by 2 million barrels per day from November.
Investors fear that the "aggressive” actions of global regulators will cause a decline in global economic activity and the beginning of a global recession. This, in turn, may lead to a decrease in demand for oil.
To combat high inflation, the world’s central banks are pursuing a tight monetary policy. Thus, in September, the US Federal Reserve and the European Central Bank raised the base interest rate by 75 basis points, and the Bank of England increased it by 50 basis points.
According to the CME Group, 82% of analysts predict that the Fed will raise rates again by 75 basis points at its meeting in November, which could be the fourth increase at such a pace and the sixth increase since the beginning of the year.
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