Oil Prices Fell due to Fears of a Recession

Energy | July 25, 2022, Monday // 13:47|  views


Oil prices fell this morning in Asia, reversing an earlier trend of gains, Reuters reported, quoted by BTA.

But the streak of losses seen recently continues - on fears that an expected rise in interest rates in the US, the world's biggest consumer of the commodity, could limit growth in demand for the fuel.

Brent for September delivery fell 48 cents, or 0.5 percent, to 2.72 a barrel, falling for a fourth day.

September U.S. light crude futures were down 65 cents, or 0.7 percent, at .05 a barrel, also down for a fourth session.

"The market tone is likely to remain bearish (with prices falling - ed.) amid concerns that interest rate hikes will reduce global demand for fuels and that the resumption of production of some Libyan crude oil will ease the tightening of global supply," commented Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.

Officials at the US Federal Reserve have signaled that the central bank is likely to raise interest rates by 75 basis points at its two-day meeting starting tomorrow. The decision is expected to be announced on Wednesday.

Meanwhile, a statement over the weekend said Libya's National Oil Corporation (NOC) aims to bring production back to 1.2 million barrels per day in two weeks.

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Tags: barrel, recession, prices, oil


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