Crude oil falls $2.12 as recession fears curb demand

Crude oil futures closed lower Thursday, with prices falling below $90 a barrel for the first time since February. Investors fear that the global recession will also slow oil demand.

WTI crude futures fell $2.12, or 2.3%, at $88.54 a barrel. This is the lowest closing level since Feb. 2.
BRENT crude futures fell $2.66, or 2.8%, at $94.12 a barrel. This is the lowest closing level since Feb. 18.

The trading environment in oil markets was weighed down by concerns about the economic situation in the U.S. and Europe, including the economic impact of China’s stringent measures to contain the spread of COVID-19.

Recently, China ordered a lockdown of Sanya. This is an important tourist city in southern Hainan after the number of infections increased.

The Bank of England (BoE) has warned that the British economy will face five quarters of recession, the longest period since the global financial crisis. British household incomes will fall sharply in 2022-2023 as consumption begins to shrink.

The U.S. economy contracted by 0.9% in the second quarter after contracting by 1.6% in the first quarter, plunging the U.S. into a technical recession.

An energy analyst at UBS said oil markets remain under pressure as U.S. crude oil and gasoline inventories came in above expectations last week. This points to a slowdown in oil demand in the U.S.

The EIA reports that U.S. crude oil inventories rose by 4.5 million barrels and gasoline inventories rose by 163,000 barrels last week.

The Spot Market is Open

Friday, August 5, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.00

88.96

+0.42

+0.47%

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