Fear Of Looming Recession In US Crashes Crude Oil Price To $97 Per Barrel

Oil prices are on their lowest run on Thursday trading below $98 per barrel as oil traders are skeptical of the impending risk of a policy tightening by US Federal Reserves and a looming global recession.

Benchmark oil, Brent Crude traded $97.33 per barrel in the early hours of Thursday, down 2.24 per cent by 10:40 AM.

West Texas Intermediate also fell $93.66 per barrel, down by 2.74.

Global recession fears have fueled a downward slide in the price of oil for weeks despite sanctions on Russia that should naturally spike prices.

The surge in Covid-19 cases in China led to a dip in the country’s crude import in June, the lowest since 2018.

The US Federal Reserves is expected to raise rates by 100 basis points to tame a 40-year high inflation plaguing the US economy.

“Uncertainty to the forecast remains to the downside, with much depending on the course of the pandemic and related measures, global financial tightening in the light of growing inflation, and the resolution of the ongoing geo-political issues in Eastern Europe,” said Organisation of Petroleum Exporting Countries.

US president Joe Biden will visit Saudi Arabia during his Middle East tour to discuss how to curb high energy prices.

French President Emmanuel Macron will meet Mohammed bin Zayed, the ruler of the United Arab Emirates on July 18, 2022, to discuss crude supplies.