The price of Texas intermediate oil (WTI) opened this Thursday with a new drop, in this case 2.01%, standing at 87.67 dollars a barrel after two days in a row of declines that have put it back below the barrier of 90 dollars.
As of 0930 New York local time (1300 GMT), WTI futures contracts for October delivery were down $1.88 from the previous session’s close.
Thus, the barrel that closed last Monday at 97.01 dollars after a strong rise that same day, has already lost ten dollars in the course of the week, due to fears of new cuts by OPEC + and the fear that dissipates into a recession that could reduce fuel demand.
On the other hand, inflation is near double-digit territory in many of the world’s largest economies, so many central banks are turning to more aggressive interest rate hikes, which could translate into a widespread slowdown and affect fuel demand.
The political tension that surrounds two major producers such as Iraq and Libya, immersed in serious civil conflicts that may affect the available demand, is somewhat offset by the possibility that another major producer such as Iran reaches an agreement on its nuclear program and can put more barrels on the market.
Federal Reserve (Fed) Chairman Jerome Powell said last Friday that the US central bank must continue to raise interest rates and keep them at a higher level until it is sure that inflation is under control.
As for natural gas, it registered a slight increase of 1.14%, while gasoline fell by 1.18% per gallon.
