Much to the relief of energy companies, politicians and drivers around the world, oil prices have returned to lower levels after several months of peaking. The price of Brent crude is down about 30% from its May highs and hovering around $95, while US oil is down about 28% since June.
There are three “responsible” for this long-awaited price cut: fears of a recession, Russian production and falling demand. However, it is not known what will happen next.
slowdown
The main factor behind the fall in prices is the escalation of fears about a recession in the world’s largest economies, and when growth slows down, so does the demand for oil. Evidence heightens fearsafter the US economy suffered two consecutive quarters of contraction, while the eurozone and the UK also appear to be on the verge of a serious recession.
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Source: Kathimerini
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.