Oil prices tumbled more than $4 on Wednesday, slumping below levels seen prior to Russia’s invasion of Ukraine as downbeat Chinese trade data fed investor worries about recession risks.
Brent crude futures were down $4.12, or 4.4%, at $88.71 a barrel by 1543 GMT, touching their lowest since February 3 and falling below $90 a barrel for the first since February 8. US West Texas Intermediate crude fell by $4.29, or 4.9%, to $82.46, reaching its lowest since Jan 24.
“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.
Several world central banks are slated to keep hiking rates to fight inflation, but the United States appears better placed to weather the storms, economists have said. That has boosted the dollar to a 24-year peak against the yen and a 37-year high versus sterling. The stronger greenback pressures oil prices, since most worldwide oil sales are transacted in dollars.
Published in The Express Tribune, September 8th, 2022.
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