Brent crude falls more than 2% on fears for demand

MOSCOW, 6 Sep — PRIME. Brent oil prices on Tuesday evening fall by more than 2% on investors’ fears about a decrease in demand, according to trading data and expert comments.

As of 18.43 Moscow time, the price of November futures for Brent crude oil falls by 2.31%, to $93.53 per barrel, October futures for WTI – symbolically grows by 0.66%, to $87.44.

Oil is getting cheaper on market concerns about a possible decline in demand. Pessimism in the markets is explained by the fact that a sharp increase in the key rate in the US is expected in September. According to the CME Group, 72% of analysts predict an increase of 75 basis points at once. In addition, coronavirus restrictions in China have a negative impact on prices, slowing down the country’s economy.

On the eve of OPEC + decided to cut oil production in October by 100,000 barrels per day to maintain stability in the markets. However, the prices for “black gold” are still declining.

“The cuts were very modest and therefore mostly a form of verbal intervention, a signal to the West of OPEC’s ability to influence the market,” Victoria Scholar, head of investment at Interactive Investor, told MarketWatch.