WTI falls more than 1% and drops below $90 as recession fears could cut demand

WTI oil prices fell more than 1%, slipping from the $90 per barrel level this morning, as investors are concerned about the recession and weak oil demand.

  • WTI crude futures fell $1.07, or 1.18%, at $89.70 a barrel.
  • Brent crude futures for October settlement declined $1.17, or 1.2% to $95.55 a barrel

Investors are concerned that the U.S. Federal Reserve (Fed) may raise interest rates for a third time by 0.75% at its September meeting. This could lead to a deeper recession in the U.S. economy and a slowdown in oil demand.

According to the U.S. Department of Commerce, the U.S. economy contracted 0.9% in the second quarter after falling 1.6% in the first quarter, plunging the U.S. into a technical recession.

Progress is reportedly being made in negotiations on the Iran nuclear agreement.

The European Union (EU) has received a response from Iran to the EU’s proposal to resume the 2015 nuclear agreement. The U.S. had previously stated that it was ready to reach an agreement with Iran as soon as the EU’s proposal was accepted.

The Spot Market is Open

Monday, August 22, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.20

89.63

-1.14

-1.26%

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