Fear of a global recession in the oil market

There are concerns about the supply of “black gold”.

The value of the September 2022 contract for the export of “Brent” oil decreased by 0.16 percent during trading operations on the ICE London intercontinental exchange.

With this, the barrel of oil is 111.27 dollars has been

The price of 1 barrel of “WTI” oil for export in August of this year decreased by 0.16 percent to 108.26 on the New York “NYMEX” commodity exchange. dollars organized.

Reuters writes that despite supply remaining tight amid OPEC output cuts, unrest in Libya and sanctions on Russia, fears of a global recession have weighed on markets.

So oil prices exceeded the gains of the session before July 4.

“Brent” oil fell by 0.3 percent to $111.27 per barrel.

USA“West Texas Intermediate” (WTI) crude oil is 108.09 per barrel. down to the dollar.

“CMC Markets” analyst says that fears of recession (weakening of economic growth rates and production falling to a not too critical level) are the main factor limiting the increase in oil prices.

According to him, rising rates and declining consumer confidence have disrupted the fuel demand forecast:

“At the same time, data USAshows that the power of the oil refinery has improved. In addition, strong USA dollars of crude oil prices weakened the broad commodity markets, including

Consumer sentiment in the US (June inflation despite a slight improvement in the forecast) fell to a record low. Because the Federal Reserve System has stated that its commitment to curb inflation is “unconditional” and concerns about interest rate increases are growing.

Analysts believe that oil supply concerns are preventing further price declines. In other words, these concerns keep oil prices high.

Economist, deputy Vusnow Bayramov says that “black gold” is still expensive compared to previous years offer however, the volatility in the stock markets has increased.

8 per barrel of “Brent” oil in June dollars decrease was recorded.

On the first day of last month, it was 116 dollars per barrel offer The price of oil has fallen further: 111.27 dollars.

The economist thinks that the recent declines in the world market price of oil are related to the strengthening of the risk of crisis in the world economy:

“Russian-Ukrainian war in context, the global economic growth forecast for 2022 was reduced from 4.1 percent to 2.9 percent.

European Union This year’s forecasts have also been revised. Europeans, who predicted a 4.0 percent growth at the beginning of the year, reduced this indicator to 2.8 percent.

“All this has increased the market uncertainty that the demand for oil will decrease, and this is also observed in the prices,” he said.

Vusnow According to Bayramov, the price of oil is not only economic, but also political Market jumps are not excluded at any time as it depends on factors:

“Unpredictable volatility in the oil market once again confirms that there is no alternative for countries rich in energy resources to form a strong non-oil sector. The priority is to minimize dependence on oil revenues.”