untitled design

Oil: Stop the profitable week series – US crude falls 9.2% in 5 days

Heavy losses for oil prices on Friday that pushed American crude in its first negative week after 7 consecutive five days, with a “dip” of more than 9%.

“Concerns about demand are mounting amid growing voices estimating that the global economy is heading for recession in the coming months,” said Fawad Razaqzada, an analyst at City Index.

Investors moved away from what was considered risky assets this week, in the wake of rising interest rates by the US Federal Reserve. Fears that the economy could lead to a recession have a negative impact on commodities.

The Fed followed in the footsteps of the National Bank of Switzerland and the Bank of England.

“While many believe that more aggressive interest rate hikes will be the key to taming inflation, at the same time the risk of the economy going into recession is rising, as high interest rates hold back growth,” said Robbie Fraser of Schneider Electric. . “As far as crude is concerned, demand concerns are crucial, as consumers in many countries see record prices at the pump.”

Crude prices rebounded on Thursday following news that the United States had imposed new sanctions on Iran. However, demand for demand persists, with local lockdowns in China being the main catalyst, according to Saxo Bank analysts. “In addition, the short-term technical prospects have been weakened after several failed attempts to break higher,” they said.

In this climate, the slow press West Texas Intermediate slipped $ 8.03, or 6.8%, to $ 109.56 a barrel on Friday. During the week, the WTI recorded heavy losses of 9.2%.

At similar rates and type oil Brent August delivery fell $ 6.69, or 5.6 percent, to $ 113.12 a barrel on Friday. Brent lost 7.3% in the week, breaking a 4-day 5-day winning streak.

Source: Capital

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular