Oil price, which had broken through the $120 level up until the beginning of this month, has fallen to the low $100 range amid concerns about an economic slowdown, and the uptrend seems to be halting.
According to Bloomberg News on the 23rd, the price of West Texas Intermediate (WTI) crude for August on the New York Mercantile Exchange fell to $102.41 per barrel, down $3.78 (3.56%) from the battlefield on the same day, and recorded $104.64 as of 4 pm Korean time on the 23rd. is in progress
The price of oil, which once rose to $120.62 during the market on the 14th, fell by 15% in less than 10 days from today’s low.
Earlier, the Federal Reserve (Fed), the central bank of the United States, raised concerns about an economic slowdown by raising the key interest rate by 0.75 percentage points at a time on the 15th (local time).
According to Bloomberg, Fed Chairman Jerome Powell’s comments before the Senate Banking Committee meeting on the 22nd about the possibility of a recession also fueled the decline in oil prices.
“It’s not at all what we intended, but it is definitely a possibility,” Powell said.
As a result, concerns about an economic recession or a hard landing are growing in the market, acting as a factor in lowering oil prices in terms of oil demand, Bloomberg explained.
Citigroup also raised the chance of a global recession to 50% on the same day.
In addition, White House Economic Advisory Committee Chairman Susilia Rouss said on the same day that “China and India have bought more Russian oil than we thought,” which is a factor that could lower oil prices on the supply side.
However, Bloomberg said there are signs that the real crude oil market is still tight, with US refiners reluctant to invest and Chinese refiners making fun of large production capacity.
/yunhap news
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