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Oil prices at their lowest level since April

With losses but far from intraday lows of as much as -5%, oil prices closed on Thursday, falling to their lowest level since April.

In particular, the slow type West Texas Intermediate U.S. crude for August delivery fell 52 cents, or 0.5%, to settle at $95.78 a barrel.

The type oil Brent for September delivery lost 47 cents, or 0.5%, to $99.10 a barrel on ICE Futures Europe.

Oil prices have been on a steady downward path for the past two weeks as concerns about an impending economic downturn that will hit energy demand have intensified.

“Concerns about faltering demand are starting to outweigh supply concerns tied to the Russia-Ukraine war, and that’s putting pressure on energy futures this week,” Tyler Richey, co-publisher of the Sevens Report, told MarketWatch. Research.

“Attention in the oil equation is clearly now on the demand side. Yesterday’s weekly report in the US showed significant increases in product inventories,” notes PVM Oil Associates analyst Tamas Varga.

According to him, “the collateral blow from rising inflation fears is the strong dollar, which is also weighing on oil prices. Interestingly, physical markets are still strong, but currently the dominant force is emerging in the climate of financial investors”.

It is noted that data in the US shows a decrease in demand, which fell to 18.7 million barrels per day, the lowest level since June 2021, while at the same time stocks in the country increased after another large release of strategic reserves.

Tomorrow, Friday, US President Joe Biden will be in Saudi Arabia, where he will attend a summit of Gulf allies and ask them to increase oil production.

Source: Capital

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