For the second consecutive session, oil prices fell, losing more than $ 1.5 amid fears that the Fed’s aggression in raising interest rates will lead to a recession affecting energy demand.
In particular, Brent for August delivery closed 1.5% or $ 1.7 at $ 110 a barrel.
Even bigger were the losses for the American WTI, which saw the price on its own contract in August fall by $ 1.92 or 1.9%, closing at $ 104.2 a barrel.
The head of the Fed Jerome Powell admitted today, on the second day of his six-month submission to Congress, that the possibility of a recession in the US is clearly possible now, although he stressed that the Fed is not trying to cause it in order to reduce inflation.
In each case, they have seized it, despite obstacles we can scarcely imagine. ”
At the same time, the growth rate of the American economy slowed down sharply in June, confirming the recessionary dynamics that are developing.
“Demand catastrophe in the future from a possible recession offsets short-term real demand that remains extremely strong,” said Dennis Kissler, vice president of BOK Financial.
At the same time, according to market sources, recent estimates by the American Petroleum Institute show that US crude and gasoline inventories rose last week, which also affects prices.
The official weekly estimates for US oil reserves were due to be released today, Thursday, but technical problems will delay the release of the data next week, the US agency said.