Oil prices are falling due to economic concerns, fears of a recession in financial markets, and the impact of the spread of the Corona virus in China.
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Brent crude futures fell to $106.26 a barrel
Oil prices fell more than 1% today, Thursday, in a volatile week, as economic concerns and fears of recession negatively affected global financial markets, outweighing concerns regarding supplies and tension in Europe.
Brent crude futures fell $1.25, or 1.2%, to $106.26 a barrel by 03:03 GMT. US West Texas Intermediate crude futures fell $1.24, or 1.2 percent, to $104.47 a barrel.
Oil prices are under pressure this week, along with global financial markets, amid concerns regarding rising interest rates and the dollar’s rise to its highest level in two decades, and worries regarding inflation and a possible recession. The prolonged shutdown to combat COVID-19 in China, the world’s largest importer of crude, has weighed on the market.
The market, however, was supported by supply concerns from Russia’s operations in Ukraine, with prices up more than 35% since the start of the year.
Prices are also receiving support from the EU’s pending ban on Russian oil, a major supplier of crude and fuel to the bloc, which might further reduce global supplies. The European Union is still haggling over the details of the Russian embargo.
Passing the ban needs consensus, and it was postponed because Hungary opposes the ban because it would be very damaging to its economy.
Yesterday, Wednesday, oil prices jumped 5%, following Russia imposed sanctions on 31 companies in countries that imposed sanctions on it following Military operation in Ukraine. This caused concern in the market, as the flow of Russian natural gas to Europe through Ukraine fell by a quarter. This is the first time that exports through Ukraine have been disrupted by the war.
Concerns regarding deteriorating demand in China, which is trying to stem the spread of the coronavirus, also curbed price increases.
