Crude oil has returned to below $90 price as global recession fears continue to mount.
Brent crude sold this morning, September 19, 2022 at $89.17, whilst WTI crude mostly used in the USA went for $84.20.
The commodity fell below $90 a barrel for the first time on September 7, 2022 since February 8, 2022.
This triggered the fear by many analysts that a global recession was looming.
Phil Flynn, an analyst at Price Futures Group told Reuters that the market is concern about the developments in Europe, one of the largest consumers.
“Right now the market is basing its concerns about what will happen due to sharply higher energy prices in Europe, slowing demand in Europe, and interest rates rising,” said Phil Flynn, an analyst at Price Futures Group.
China’s weak economic data and stringent zero-Covid-19 policy added to demand concerns. Its crude oil imports in August fell 9.4% from a year earlier, customs data showed.
Several Central Banks across the world are slated to keep hiking interest rates to fight inflation, which has been on the ascendancy since the beginning of the year.
This is fuelled by the Russian invasion of Ukraine. Both countries produce some important food products but the war has affected the production, thus, increasing the prices of wheat, cooking oil, among others.