Oil prices fell nearly 10% on Tuesday due to fears of a recession in crude-consuming countries such as China and the United States. Brent crude from the North Sea, for September delivery, tumbled 9.45% to $102.77 a barrel, following falling nearly 10%. US West Texas Intermediate (WTI) crude for August delivery, meanwhile, fell 8.23% to $99.50, slipping below $100 a barrel for the first time since May 11.
Hardening in sight
Deteriorating inflation prospects have made it necessary to raise interest rates to a level that might dampen economic activity, the US Federal Reserve (Fed) said on Wednesday in the minutes of its June meeting. U.S. central bankers hiked the federal funds rate by 75 basis points last month and a further hike of 50 or 75 basis points will be considered in July, according to the minutes of the meeting published on Wednesday. Fed leaders have clarified that a more restrictive policy might be adopted in the coming months if inflationary pressures persist. The magnitude of the rise in June, the strongest since 1994, underlines the institution’s desire to curb inflation at its highest for more than 40 years in the United States.
Decreasing car deliveries at Tesla
U.S. electric car maker Tesla said over the weekend that its second-quarter deliveries fell from the previous three months, due to the prolonged shutdown of its Shanghai plant, supply issues and difficulties. related to the opening of two new factories. Tesla delivered 254,695 vehicles to customers in the second quarter, compared to 310,048 in the first three months of 2022. Deliveries, however, were up regarding 27% from the second quarter of 2021. Separately, the chief executive of Tesla, Elon Musk, recently described the two new factories of the group, located in Germany and Texas, as “gigantic financial pits”.