Oil prices fell sharply in Friday’s trading, and fell by 5%, in light of the growing fears of a global economic recession.
Brent crude futures recorded $86.56 a barrel, following declining by 4.36%, or $3.88, while US crude futures fell 5.03%, or $4.19, to regarding $79.30 a barrel.
The levels recorded by oil today have not been seen since January, with the dollar index reaching its highest level in two decades and concerns regarding demand with raising interest rates that threaten to push major economies into recession.
Global stocks hit a two-year low on Friday, while the dollar index hit a two-decade high, putting pressure on oil.
“Weak European PMIs and growth concerns as a result of sharp monetary policy tightening in the United States and Europe are weighing on risky assets. Oil prices are not immune to these growth concerns,” said Giovanni Stonovo, analyst at UBS.
Central banks around the world raised interest rates following the US Federal Reserve raised interest rates by 75 basis points for the third time on Wednesday, raising the risks of an economic slowdown.
In terms of oil supplies, a senior US State Department official said that efforts to revive Iran’s nuclear agreement concluded in 2015 were stymied by Iran’s insistence on closing the International Atomic Energy Agency’s investigations related to the discovery of uranium traces at undeclared sites, which reduced expectations of Iranian oil returning to Iran. markets.
Wall Street’s main indexes opened lower on Friday, heading towards their lows recorded in June, as investors worried regarding the possibility of an economic slowdown and damage to corporate profits from the sharp tightening of monetary policy by the Federal Reserve (the US central bank) in an attempt to curb inflation. .
The Dow Jones Industrial Average fell 121.03 points, or 0.40%, to 2,9955.65 points. The Standard & Poor’s 500 index fell 30.85 points, or 0.82%, to 3,727.14 points. The Nasdaq Composite Index fell 114.11 points, or 1.03%, to 10,952.69 points.
