Crude Oil Price: Crude Oil Prices Fall Again
Crude Oil Price: Crude oil prices fall again, Brent crude below $ 100 after April.
The price of crude oil in the international market is continuously coming down. Crude oil prices on Tuesday fell by $ 7 in global benchmark Brent crude to below $100 a barrel.
This is the first time in the last three months that the price of crude oil has fallen below $100.
The strengthening of the dollar against other international currencies, tighter restrictions in China, the world’s largest oil importer due to rising cases of COVID-19, and fears of a growing economic slowdown globally, have shocked the crude oil market.
According to a Reuters report, this fall in oil prices after a month of modest volatility indicates further concerns in the market.
The market has also been affected by the increase in interest rates to check inflation. Such measures will give momentum to the economy, but the slowdown will affect the demand for oil.
Brent crude is again below $100.
On Tuesday, Brent crude futures settled down $7.61 or 7.1 percent at $99.49 a barrel. This is the lowest level since April 11.
There the US West Texas Intermediate crude also softened and was down 8.25, or 7.9 percent, at $95.84. This is also the lowest in three months.
Brent is down 29 percent so far, while West Texas Intermediate (WTI) is down 27 percent since hitting the highest level in March this year.
Crude oil may come down.
Oil prices are facing extreme pressure these days. The price of oil is usually the dollar, whereas other currencies are weakening due to the strengthening of the dollar.
Fears of a recession have also forced investors to sell their oil as quickly as possible. Hedge funds and other money managers have sold the equivalent of 110 million barrels of oil as of July 5.
Brent and WTI volatility is at its highest. In a way, both of them are at the level of April 2022. The imposition of new corona restrictions in China has had the biggest impact on oil prices.
Investors fear that if Corona cases continue to rise, strict travel restrictions may be imposed in China, after which the demand for oil there will decrease.
