Oil rises in price after three days of price decline

MOSCOW, Sep 2 — PRIME. World oil prices on Friday morning moved to corrective growth after a three-day significant decline in quotations, adding about 2%, according to trading data and comments.

As of 8:16 Moscow time, the price of November futures for Brent crude oil is growing by 2.02%, to $94.23 per barrel, October futures for WTI – by 2.06%, to $88.42.

“After the huge losses in the last three sessions, we may see some consolidation,” said Vandana Hari, founder of Singapore consultancy Vanda Insights, quoted by Bloomberg.

Over the previous three days, Brent crude fell 10.8%, WTI – 10.35%.

The decline in oil prices was due to a number of reasons. Thus, the negative impact on the cost of “black gold”, in particular, had statistics from China. The manufacturing business activity index (PMI) in the country fell to 49.5 points from 50.4 in July, thus falling below the “neutral” 50, which, in turn, fuels investor fears about a slowdown in the Chinese economy and a possible reduction in demand for oil.

In addition, the prospect of an increase in the discount rate by the US Federal Reserve leads to a decrease in oil prices, since the tightening of monetary policy may negatively affect the state of the entire global economy and, subsequently, also reduce demand for energy resources. It also provides less fresh liquidity to the markets.