Zoom News : Jun 22, 2022, 08:55 PM
Delhi: Crude oil (crude oil) prices fell by more than 5 percent on Wednesday. Oil traders are fearing that the sharp increase in interest rates to control inflation may not invite a recession and may affect the demand for oil. On Wednesday, the price of West Texas Intermediate fell 5.6 percent to $103.31 a barrel. At the same time, the price of Brent crude fell by 5.2 percent to reach $108.62 per barrel.
Prices had reached the high of many years in the pastIn recent months, the price of crude oil had reached a multi-year high. Crude oil prices rose on concerns that limited supplies might not meet rising demand due to the Ukraine war. West Texas Intermediate (WTI) crude oil recently touched an all-time high of around $124 a barrel. HDFC Securities Senior Analyst (Commodities) Tapan Patel says that the near term support of crude is $ 98 per barrel, while there is resistance at $ 123 per barrel.Fear of slowdown in economies around the world increasedRising energy costs led to a sharp jump in inflation, and inflation has reached a high level since the 1980s. Central banks have had to increase borrowing costs to control inflation. Due to rising interest rates, fears of slowdown in economies around the world have increased and there is an atmosphere of softness in the crude markets. At the same time, Goldman Sachs says that it expects crude oil prices to see a rise once again. Goldman Sachs says, “The demand for a commodity far exceeds its supply. Markets will remain tight despite slowing growth rates.
Prices had reached the high of many years in the pastIn recent months, the price of crude oil had reached a multi-year high. Crude oil prices rose on concerns that limited supplies might not meet rising demand due to the Ukraine war. West Texas Intermediate (WTI) crude oil recently touched an all-time high of around $124 a barrel. HDFC Securities Senior Analyst (Commodities) Tapan Patel says that the near term support of crude is $ 98 per barrel, while there is resistance at $ 123 per barrel.Fear of slowdown in economies around the world increasedRising energy costs led to a sharp jump in inflation, and inflation has reached a high level since the 1980s. Central banks have had to increase borrowing costs to control inflation. Due to rising interest rates, fears of slowdown in economies around the world have increased and there is an atmosphere of softness in the crude markets. At the same time, Goldman Sachs says that it expects crude oil prices to see a rise once again. Goldman Sachs says, “The demand for a commodity far exceeds its supply. Markets will remain tight despite slowing growth rates.