Oil prices fell on Tuesday, August 30, due to fears that the weakness of global economies caused by inflation would lead to a decline in demand for fuel, as well as Iraqi exports not being affected by the ongoing clashes there.
Brent crude futures for October delivery fell $4.60, or 4.38%, to $100.58 a barrel, following rising 4.1 percent on Monday, the biggest increase in more than a month.
The October contract expires tomorrow, Wednesday, and the contracts for November delivery, the most active in trading, fell 3.66% to $99.15 a barrel.
US West Texas Intermediate crude was traded at $93.02 a barrel, down $3.94, or 4.05%, following rising 4.2% in the previous session.
Inflation is close to double digits in many of the world’s major economies, a level not seen in nearly half a century, which might prompt central banks in the United States and Europe to resort to sharper increases in interest rates that might limit economic growth and affect demand. on fuel.
Analysts from Hetong Futures said, “risk appetite has declined due to the expectation that the US Federal Reserve will continue to raise interest rates, and the decline in natural gas prices in Europe is exacerbating the uncertainty of the picture of the energy crisis.”
Giovanni Stonovo, an analyst at UBS, said prices fell following statements from the state-owned Iraqi Oil Marketing Company (SOMO) that Iraqi oil exports were not affected by the turmoil.
OPEC +, which includes OPEC members and allied producers led by Russia, will hold a meeting on September 5 to determine production policy.
Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries, last week raised the prospect of production cuts that sources said might coincide with an increase in supply from Iran if it reached a nuclear deal with the West.
