Oil prices fall on recession risks and fears around demand

MOSCOW, 11 Oct — PRIME. World oil prices widened their decline to 2% on Tuesday afternoon amid fears of a global recession and demand, according to trading data and analyst comments.

As of 12:41 Moscow time, the price of December futures for Brent crude fell by 2.14%, to $94.13 per barrel, November futures for WTI — by 2.41%, to $88.93. In the morning, oil became cheaper by an average of 0.5%.

“Oil is trading lower on fresh demand concerns… Risk in the markets has increased again due to fears that the global economy, including the US, will face a very difficult 2023,” Saxo Bank’s head of commodities strategy told Bloomberg. Ole Hansen.

The theme of a possible recession is the main one for trading on Tuesday, risk aversion is holding back commodity prices and stock markets. Thus, copper is cheaper by 1%, aluminum – by 2%, the main European stock indices are down by 1%, futures for the main Wall Street indices also show a decrease.

Fears about a recession are due to the fact that the world’s central banks tend to raise their key rates to combat high inflation. On Wednesday, the US Federal Reserve System (FRS) will publish the minutes of the September meeting, which may contain signals about the future policy of the Central Bank and the economic situation. And on Thursday, statistics on annual inflation in the country will be published.