Oil prices dropped on Wednesday as investors worried that draconian interest rate increases to combat…
Fears of a US recession and China’s delayed growth have caused oil prices to decline.
On Monday, oil prices modestly declined, supported by shaky economic growth in China and a possible US recession.
At 9.54 a.m. local time (0654 GMT), the price of international benchmark Brent crude was USD 87.51 per barrel, down 0.14 percent from the previous trading session’s closing price of USD 87.63 per barrel.
At the same time, the American benchmark West Texas Intermediate (WTI) was trading at USD81.56 per barrel, down 0.10 percent from the previous session’s closing price of USD81.64 per barrel.
Due to the Lunar New Year vacation, major Asian markets, including China, are closed, which is anticipated to have an impact on demand this week.
Although China decided to lift its Covid-19 (coronavirus disease 2019) travel restrictions last month, the oil industry is still confident about a rise in demand there.
The markets are anticipating US fourth-quarter gross domestic product data, which is due later this week and will show whether the world’s largest economy is likely to enter a recession.
Experts express concern that a potential US recession could counteract rising Asian demand.
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