The decline in oil prices can be attributed to an anticipated increase in interest rates by the Federal Reserve.
oil prices fell on Wednesday on worries regarding fuel prices ahead of a meeting of the United States Central Bank. Most people would expect the national bank to raise interest rates by at least 75% in order to combat expansion. more
By 00:08 GMT, the price of a barrel of WTI crude oil had decreased by 8 cents, or 0.1 percent, to $118.85. The price of a barrel of Brent crude declined by 26 cents, which is equivalent to a decrease of 0.2 percent.
Flushing expansion has caused financial backers and oil merchants to prepare for a huge action by the Fed for the present week. This move might be the biggest increase in the cost of financing for the United States in the last 28 years.
As a result of the most recent COVID outbreak in China, which was followed by the opening of a 24-hour bar in Beijing, there are fears of another round of lockdowns.
The Organization of Petroleum Exporting Countries (OPEC) reaffirmed its prediction in its monthly report that global oil demand will surpass pre-pandemic levels in 2022. Despite this, OPEC warned that Russia’s invasion of Ukraine – which Moscow refers to as a “unique activity” – and improvements connected with the COVID pandemic represent a significant risk.
OPEC representatives and industry sources have warned the makers’ gathering that they anticipate demand growth will slow down in the following year. This is due to the fact that rising oil prices contribute to driving up demand and act as a drag on the global economy.
In any case, offering a helping hand to costs is a tight stockpile, which has been exacerbated by a drop in trade from Libya in the midst of a political crisis that has hit both result and ports. assisting with expenses is a limited stockpile assisting with expenses.
