ISLAMABAD, July 07 (Alliance News): Global oil prices have plummeted to 12-week lows amid fears of falling demand due to the global recession.
Brent for September delivery fell 2. 2.99, or 2.9 percent, to .7 99.78, while US West Texas Intermediate (WTI) crude fell 3.19 percent or 3.2 percent to 96.31, foreign media reported.
Brent prices fell 9 percent and WTI fell 8 percent, the lowest level since April 11.
According to the report, both benchmarks remained technically below the 30 level on the second day of the oversold treaty with the Relative Strength Index (RSI). If Brent closes at that level, it will be the first two days since December 2021. Will remain on the oversold treaty.
Investment bank Goldman Sachs says falling oil demand is due to growing fears of a recession.
Similarly, the cost of German government debt has fallen to a five-week low due to fears of a recession.
The US stock indexes also declined in the wake of the Federal Reserve’s decision to review the economic situation and interest rate hikes.
According to the report, the fall in oil prices is also due to the rising value of the dollar, which has reached a nearly 20-year high against other currencies.
Stabilization of the dollar makes oil more expensive for other currency holders and reduces demand.
The report said that China is the world’s largest oil importer and there is a risk of another lockdown due to Code-19, which could lead to a drop in demand.
China’s crude oil imports from Russia rose to a record 55 percent in May, down from a year earlier.
Russia has overtaken Saudi Arabia as a major oil exporter as refiners have taken advantage of discounted prices following Russia’s intervention in Ukraine.
Petroleum refinery company Aquinor ASA said another reason for the drop in oil prices was that the impact on the oil and gas fields due to the strike in Norway’s petroleum sector is likely to fully recover in a few days. Is.
Iran has said it wants a lasting deal with world powers after talks with the United States and its allies in Qatar to restore the 2015 nuclear deal.
Analysts say a nuclear deal with Iran could add 1 million barrels a day to the world’s crude oil supply.