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Oil costs decline due to recessionary concerns
(MENAFN) According to trading figures, oil costs were on the down on Monday, dropping to their lowest point since the year's beginning.
On the London Intercontinental Exchange, the price of Brent crude oil futures for November fell by 2.4 percent to USD84.55 a barrel. For the first time since January 14, Brent fell below USD85 per barrel. West Texas Intermediate crude, the United States benchmark, dropped by 2.6 percent to USD77.24 a barrel, its lowest level since January 6.
The present dip in oil costs, according to analysts who talked with news source RBK, is taking place against the backdrop of a stronger United States currency, the expectation of more interest-rate rises by global central banks, and recession worries.
According to economists, rising interest rates might worsen the global economy and trigger a recession, which would reduce fuel consumption. A higher United States currency would also make it harder for non-dollar customers to purchase oil.
Reuters was informed by Sugandha Sachdeva, vice president of commodity research at Religare Broking, “a backdrop of global monetary policy tightening by the key central banks to quell elevated inflation, and a splendid run-up in the greenback towards more than two-decade highs, has raised concerns about an economic slowdown and is acting as a key headwind for crude prices.”
On the London Intercontinental Exchange, the price of Brent crude oil futures for November fell by 2.4 percent to USD84.55 a barrel. For the first time since January 14, Brent fell below USD85 per barrel. West Texas Intermediate crude, the United States benchmark, dropped by 2.6 percent to USD77.24 a barrel, its lowest level since January 6.
The present dip in oil costs, according to analysts who talked with news source RBK, is taking place against the backdrop of a stronger United States currency, the expectation of more interest-rate rises by global central banks, and recession worries.
According to economists, rising interest rates might worsen the global economy and trigger a recession, which would reduce fuel consumption. A higher United States currency would also make it harder for non-dollar customers to purchase oil.
Reuters was informed by Sugandha Sachdeva, vice president of commodity research at Religare Broking, “a backdrop of global monetary policy tightening by the key central banks to quell elevated inflation, and a splendid run-up in the greenback towards more than two-decade highs, has raised concerns about an economic slowdown and is acting as a key headwind for crude prices.”
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