Brent crude was down 44c at $91.90 a barrel by while US West Texas Intermediate crude dipped 9c
17 August 2022 - 10:50
byAlex Lawler
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London — Oil fell on Wednesday to a six-month low after a brief respite as concerns about the prospect of a global recession that would weaken demand overshadowed a report showing lower US crude and gasoline stocks.
Figures on Wednesday did little to improve the economic backdrop, showing British consumer price inflation jumped to 10.1% in July, its highest since February 1982, intensifying a squeeze on households.
Brent crude was down 44c, or 0.5%, at $91.90 a barrel by 8.15am GMT and earlier fell to $91.64, the lowest since February. US West Texas Intermediate (WTI) crude dipped 9c, or 0.1%, to $86.44.
“The oil market is struggling to shake off recession fears, and there is little to suggest that this will change any time soon,” said Stephen Brennock of oil broker PVM.
Earlier, prices gained support from a report showing lower US crude and fuel stocks. Crude stocks fell about 448,000 barrels and gasoline by about 4.5-million barrels, said sources citing American Petroleum Institute (API) figures on Tuesday.
Official inventory data from the Energy Information Administration (EIA) is out at 2.30pm GMT.
Oil has soared in 2022, coming close to an all-time high of $147 in March after Russia’s invasion of Ukraine worsened supply concerns. Prices have fallen since as those concerns were edged out by the prospect of recession.
“There are growing downside risks as a result of the growth outlook and ongoing uncertainty around Chinese Covid restrictions,” said Craig Erlam of brokerage Oanda.
On the oil-supply front, the market is awaiting developments from talks to revive Iran’s 2015 nuclear deal with world powers, which could eventually lead to a boost in Iranian oil exports if a deal is reached.
The EU and US said on Tuesday they were studying Iran’s response to what the EU has called its “final” proposal to save the deal.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Oil fall to six-month low on recession fears
Brent crude was down 44c at $91.90 a barrel by while US West Texas Intermediate crude dipped 9c
London — Oil fell on Wednesday to a six-month low after a brief respite as concerns about the prospect of a global recession that would weaken demand overshadowed a report showing lower US crude and gasoline stocks.
Figures on Wednesday did little to improve the economic backdrop, showing British consumer price inflation jumped to 10.1% in July, its highest since February 1982, intensifying a squeeze on households.
Brent crude was down 44c, or 0.5%, at $91.90 a barrel by 8.15am GMT and earlier fell to $91.64, the lowest since February. US West Texas Intermediate (WTI) crude dipped 9c, or 0.1%, to $86.44.
“The oil market is struggling to shake off recession fears, and there is little to suggest that this will change any time soon,” said Stephen Brennock of oil broker PVM.
Earlier, prices gained support from a report showing lower US crude and fuel stocks. Crude stocks fell about 448,000 barrels and gasoline by about 4.5-million barrels, said sources citing American Petroleum Institute (API) figures on Tuesday.
Official inventory data from the Energy Information Administration (EIA) is out at 2.30pm GMT.
Oil has soared in 2022, coming close to an all-time high of $147 in March after Russia’s invasion of Ukraine worsened supply concerns. Prices have fallen since as those concerns were edged out by the prospect of recession.
“There are growing downside risks as a result of the growth outlook and ongoing uncertainty around Chinese Covid restrictions,” said Craig Erlam of brokerage Oanda.
On the oil-supply front, the market is awaiting developments from talks to revive Iran’s 2015 nuclear deal with world powers, which could eventually lead to a boost in Iranian oil exports if a deal is reached.
The EU and US said on Tuesday they were studying Iran’s response to what the EU has called its “final” proposal to save the deal.
Reuters
Oil recovers from six-month lows on drop in US stocks
Markets monitor Iran and China issues, leaving oil prices lower
Oil extends losses as weak China data renew recession fears
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