- Sharp fall in oil prices due to expectations of lower demand.
- WTI reaches lows in six weeks.
- Equity markets fall throughout the world on fears of recession.
Oil prices are affected by the negative climate in the markets due to fears of a possible recession, which affects the demand for crude oil. The falls in the value of the barrel are around 4%.
The barrel of WTI (platforms) went from ending Tuesday near $109.00, to fall as low as $102.75, before stabilizing around 104.00. The drop led to prices not seen since mid-May. The barrel of Brent reached 109.00$
The negative climate in negative markets is being a downward drag factor for oil. Stocks in Europe are falling more than 1.5% on average, as are the futures of the main Wall Street indices.
Fears about the possibility of a recession that will weaken the demand for oil have had an impact on the price of crude oil. Since last week’s peak, WTI has lost almost $20.
On Thursday the president Biden will meet with representatives of the oil industry, seeking to increase production capacity. The White House is also considering temporarily suspending the federal gas tax.
Technical levels
Source: Fx Street
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