The price of a barrel of Brent, Europe’s benchmark for crude oil, fell below $90 on Wednesday, September 7. The first since February!
That hasn’t happened since February. The price of a barrel of Brent, the benchmark for crude oil in Europe, is it has dropped below $90. This happened on Wednesday September 7 and continues until this morning September 8. For now, it remains more than $88a decrease of about 4% compared to 24 hours earlier.
A similar situation for the American Midwest in Texas. The latter also has it lost nearly 4%, falling to $83.42. So the barrel slips below the $85 mark for the first time since the beginning of the year continues too.
This decrease is driven by fears of economic recession in Western countries. Blame it on the global cost of living crisis. But also on weak demand in Chinaespecially, where many cities have been undermined by restrictions linked to Covid-19.
The OPEC+ announcement did not have the expected effect
OPEC+ announcements of the beginning of this week, to support crude prices, will not have done anything about it. Indeed, the Organization of the Petroleum Exporting Countries and their partners have decided cut daily production by 100,000 barrels. The goal being back to August levelsto stop the recent decline in prices and address their volatility.
It worked this Monday, September 5, and a an increase in the price of a barrel of Brent by almost 3%. Before the first such decline on Tuesday. Rebelote this Wednesday, therefore, to return to the cheapest rates.
It remains to be seen what reaction OPEC will have to this. The union was discussed, during its last meeting, next discussion before the next meeting on October 5. It will be a question to answer, “if necessary, for market development”.
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