The Petroleum decreased for the third day, pushed down by a mix of factors: the increasingly profound global slowdown seems destined to coincide with an increase in supply from producers Opec.
In addition, depressing economic data from the largest crude oil buyer, China, has renewed fears of a global recession.
At about 8.17 am on Brent crude trades at $ 94.05 a barrel with a 1.10% decline and futures WTI they are priced at 88.67 dollars a barrel, down 0.86%.
The Petroleum it is trading close to the lowest level of the last six months, leaving behind the peaks reached following the Russian invasion of Ukraine, which reversed trade flows and pushed prices up to $ 130 a barrel. The market has also been hit by volatility bouts recently, exacerbated by lower liquidity levels.
Because the price of oil is falling
First of all, there is an effect China on oil prices. China’s central bank cut lending rates to boost demand, as the economy slowed unexpectedly in July, with factory and retail activity squeezed by politics zero-Covid of Beijing and a real estate crisis.
“Prices of raw material across the board they have been under pressure as Chinese economic data in July painted a more negative-than-expected growth picture, which has sparked renewed concerns about the outlook for demand. “Yeap Jun Rong, IG Group’s market strategist, wrote in a statement.
Investors are also carefully considering talks to revive the 2015 Iran nuclear deal. According to analysts, more oil could enter the market if Iran and the United States accepted an offer from the European Union, which would remove the export sanctions of Iranian crude oil.
Also there Libya is pumping more and in the United Statestotal production in major U.S. shale oil fields will rise to 9.049 million barrels per day in September, the highest since March 2020, the U.S. Energy Information Administration (EIA) said Monday in its productivity report.
“THE oil prices are weighed down by weaker macroeconomic prospects due to poor data from China and the possible new supply from Iran “said Sean Lim, an analyst at RHB Investment Bank Bhd. “However, even if the deal with Iran passes, any increase in the oil production it may take some time, so its immediate effect may not be too strong “.