Oil prices are moving horizontally due to inflation and recession fears

Crude oil prices open trading at a contrast between the rise and fall of 15 cents, amid fears that high inflation will lead the global economy into a recession.

• Oil prices are moving horizontally due to inflation and recession fears

Crude oil prices opened trading today, Thursday, with a contrast between the rise and fall of 15 cents, amid fears that high inflation will lead the global economy into a recession.

On Wednesday, the US Bureau of Labor Statistics said: inflation The annual rate in the United States jumped to 9.1% last June, up from 8.6% in May, the highest level in 41 years.

The efforts of the Federal Reserve Office (the US Federal Reserve) did not succeed in curbing inflation, as it implemented several increases in interest rates in an attempt to lower prices.

By 06:49 GMT, the price of Brent crude futures for September delivery rose by 0.05%, or 5 cents, to $99.50 a barrel.

On the other hand, the price of futures contracts for US West Texas Intermediate crude, for August delivery, decreased by 0.02%, or two years, to $ 96.28 a barrel.

On Wednesday, the US Energy Information Administration said that crude oil inventories rose by 3.3 million barrels in the week ending July 8, which indicates the possibility of a decline in demand for fuel due to higher prices.

Investors fear that sharp increases in interest rates, in order to curb inflation, will lead to a severe slowdown in economic activity and damage the demand for oil.

“Recession fears continue to hurt the market, while a stronger US dollar and a rise in COVID-19 cases in parts of China certainly aren’t helping,” said Warren Patterson, head of commodity strategy at ING.