Moscow,Rising crude oil prices have begun to soften since Russia invaded Ukraine. Crude, which once crossed ૩ 150 a barrel, has now slipped below 100. West Texas Intermediate (WTI) crude futures fell 4.5 percent to ૯૮ 7 today. Crude prices have fallen amid speculation that a recession could hit next year. It shows that there has been a softening in demand.
Oil futures have fallen below ૦૦ 100 for the first time since May. The dollar rose on Tuesday and there was pressure on oil prices. Citigroup said crude oil prices could fall to ૬૫ 6 a barrel this year due to the recession. This calculation is very different from JP Morgan’s estimate. JPMorgan Chase had forecast crude to hit 50.
Fawad Razzakzada, a market analyst at Citi Index, said there were signs of declining demand amid concerns over the supply of crude oil, which has led to a fall in crude oil prices. More and more analysts believe that in the next few months, an economy like the US will see negative growth and eventually a recession.
In China, on the other hand, Kovid’s condition is out of control.
Mass testing of Kovid has started in nine districts of Shanghai. China is one of the world’s largest oil consumers and there are questions about whether there will be a recovery in demand. China has decided to impose lockdowns in some cities due to the escalation of Kovid cases on Sunday and Monday. There are other factors affecting the price of crude oil. Libya’s oil supply has been disrupted recently.
Offshore workers in Norway have gone on strike, disrupting oil and gas supplies. The strike is expected to reduce oil and gas output by 2,000 barrels a day. Saudi Arabia, the world’s largest oil exporter, has raised crude oil prices for August. But overall there is concern in the American market where a recession is likely to erupt next year.SSS2KP