Oil in the third quarter showed the first decline since 2020

MOSCOW, 30 Sep — PRIME. World oil prices fell by 21-26% in the third quarter, showing the first decline since 2020, according to trading data.

In September, the cost of Brent crude fell by 4.7% to $87.96 per barrel, the cost of WTI fell by 9% to $79.49.

According to the results of the third quarter, Brent fell by 21.2%, WTI – by 26.7%. The quarterly decline in oil prices was recorded for the first time since 2020, when prices fell by more than 60% in the first quarter. Since the beginning of the year, both brands have risen in price by 10.2% and 4.5%, respectively.

In the third quarter, the world economies faced increased inflation. Thus, annual inflation in 19 eurozone countries accelerated to a record 9.1% in August from 8.9% a month earlier. At the same time, according to the results of September, according to preliminary estimates, inflation accelerated to 10%. In the US, inflation slowed to 8.3% in August from 8.5% a month earlier, but the figure is still far from the target of 2% set by the US Federal Reserve System (FRS).

World central banks respond to high inflation by raising rates. Thus, the US Federal Reserve and the ECB raised the base interest rate by 75 basis points, and the Bank of England – by 50 basis points.

Investors fear that the tight monetary policy of world regulators will lead to a decrease in global economic activity and the beginning of a recession. In such conditions, the demand for oil tends to decrease, which leads to a fall in prices.