Oil futures contracts closed sharply down on Wednesday (7), at the lowest levels recorded since the beginning of the year, despite the prospect of tighter supply. Prices were influenced by data that reinforced fears of a slowdown in the global economy.
On the New York Mercantile Exchange (Nymex), a barrel of WTI for October fell 5.69%, or $4.94, to $81.94, the lowest since Jan. On the Intercontinental Exchange (ICE), Brent for November closed down 5.20% or $4.83 at $88.00, below the $90 mark for the first time since February.
China’s General Administration of Customs said today that the country’s exports grew 7.1% year-on-year in August, well below the 18% rise in July and also the 12.5% increase expected by economists polled by Wall Street. Street Journal.
In Germany, industrial production fell 0.3% in July from a month earlier, after seasonal adjustments, according to data published on Wednesday by the country’s national statistics office, Destatis. Analysts polled by the Wall Street Journal had predicted a larger drop of 0.5%. In the annual comparison, the production of the German industry retreated 1.1% in July.
“The downward pressure on oil is explained by growing fears of recession,” Swissquote said.
The prospect of new interest rate hikes in the United States was another factor that weighed on oil contracts. Today, the vice president of the Federal Reserve (Fed, the American central bank), Lael Brainard, said that interest rates “will have to rise more”, without specifying levels, in a speech during a conference in New York. She stressed that the economic picture is “highly uncertain” and that her decisions will depend on the country’s indicators. Brainard reinforced the Fed’s commitment to bringing inflation back to the 2% target.
In addition, Russian President Vladimir Putin said today that the country is ready to prolong the rationing of natural gas exports and cut off supplies of oil and oil products if the West goes ahead with the plan to set a price cap. for Russian oil.
*With information from Dow Jones Newswires
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
