As worries about a worldwide recession continue to grow, the price of crude oil has fallen again below $90.
Brent crude closed at $89.17 this morning, September 19, 2022, while WTI crude, which is primarily utilized in the USA, closed at $84.20.
On September 7, 2022, the price of the commodity dipped below $90 per barrel for the first time since February 8, 2022.
Many analysts became concerned that a global recession was imminent as a result of this.
The market is concerned about the events in Europe, one of the main users, according to Price Futures Group analyst Phil Flynn, who spoke to Reuters.
According to Phil Flynn, an analyst at Price Futures Group, “the market is currently basing its concerns about what will happen on what will result from dramatically higher energy prices in Europe, slower demand in Europe, and rising interest rates.”
Concerns about demand were exacerbated by China’s poor economic indicators and strict zero-Covid-19 policy. According to customs figures, its imports of crude oil decreased by 9.4% in August from a year earlier.
To combat inflation, which has been on the rise since the start of the year, several Central Banks around the world plan to maintain raising interest rates.
The invasion of Ukraine by Russia has fueled this. Both nations produce some significant food items, but the war has hampered production, increasing the cost of items like wheat and cooking oil, among others.