Oil Slides to $92 amidst Global Uncertainties
Oil prices declined marginally during the week ending Sept. 16 as recession fears and Covid-19 restrictions fueled global demand worries. Brent crude traded at $92 per barrel on Friday, posting a 0.6% decrease from the Monday session that opened at $92.54 a barrel.
American benchmark West Texas Intermediate (WTI) registered at $85.91 per barrel at the same time on Friday, falling 0.4% relative to the opening price of $86.25 a barrel on Monday.
Oil prices started the week on a negative note over demand worries, as China’s strict zero-Covid policy and fears of an economic slowdown weighed on market sentiment.
Prices slipped further midweek following an increase in US consumer prices in August and with raised prospects of a sizable interest rate hike at the Fed meeting next week. READ: Yields Mixed as Markets Price in Uncertainties on Naira Assets
The more-than-expected increase in the US commercial crude oil inventories also pressured prices, signalling low demand in the world’s biggest oil-consuming country.
According to data released by the Energy Information Administration late Wednesday, inventories increased 0.6% during the week ending Sept. 9, rising by around 2.4 million barrels to 429.6 million barrels, relative to market expectations of a fall of 200,000 barrels.
Although gains were limited by global recession fears and weak oil demand, oil prices edged higher early Friday after traders availed of profit-taking from Thursday’s low prices.
Meanwhile, the World Bank warned in a report on Thursday that the global economy could soon face a recession due to monetary tightening policies of central banks and rising interest rates. # Oil Slides to $92 amidst Global Uncertainties
