Oil falls in price on fears of a global recession

MOSCOW, Sep 23 — PRIME. World oil quotes on Friday evening are reduced by about 5% on fears of the imminent start of a global recession, according to trading data.

As of 20.31 Moscow time, the price of November futures for Brent crude oil falls by 4.96% to $85.97 per barrel, November futures for WTI — by 5.61% to $78.81.

Previously, both brands lost up to 5-6%. The price of WTI fell below $80 during trading for the first time since January 11, and Brent fell below $86 for the first time since January 24. Since the beginning of this week, Brent has fallen in price by 5.73%, WTI – by 7.25%.

This week, the central banks of some countries raised their discount rate. The US Federal Reserve raised the rate by 75 basis points to 3-3.25% per annum. The Bank of England raised the rate by 50 basis points to 2.25%, the National Bank of Switzerland – by 75 basis points to 0.5% per annum, setting a positive discount rate for the first time since 2014.

Against this backdrop, investors fear a global recession. In such conditions, the demand for energy carriers falls.

“Oil, along with broader financial markets, is trading lower as traders grapple with fears of a massive recession,” Manish Raj, chief financial officer of Velandera Energy Partners, told MarketWatch.

Also on Friday, US oilfield service company Baker Hughes released data on the number of operating oil rigs in the US. For the week to September 23, their number increased by three – up to 602 units.