Oil prices fall on fears for demand

MOSCOW, 15 Sep — PRIME. World oil prices on Thursday afternoon are falling within 1%, there are fears on the markets for a decrease in demand for “black gold”, follows from the trading data and expert comments.

As of 14.04 Moscow time, the price of November futures for Brent crude oil is reduced by 0.74%, to $93.4 per barrel, October futures for WTI – by 0.7%, to $87.86.

Investors fear that high inflation in the countries of the world will force central banks to sharply raise key rates. Thus, annual inflation in the US in August amounted to 8.3% against 8.5% a month earlier, while it was expected to slow down to 8.1%. At the same time, the target indicator for the American economy is 2%.

Against the backdrop of negative statistics, 76% of analysts surveyed by CME Group expect the US Federal Reserve System (FRS) to raise rates by 75 basis points, while the other 24% expect an increase of 100 basis points at once. A sharp increase in key rates may cause a slowdown in the economy and a decrease in global demand for “black gold”.

Earlier, the International Energy Agency lowered its forecast for growth in oil demand. According to the IEA, by the end of the year, growth will be at the level of 99.7 million barrels per day, which is 100,000 barrels less than the previous forecast.

“The market is overreacting to concerns about either an expected supply crunch or, as it is happening now, worries about weakening oil demand due to the threat of a recession. This is causing prices to decline,” the vice president of macroeconomics of oil in Wood Mackenzie by Ann-Louise Hittle.