What do international oil prices look like?  -

What do international oil prices look like? –

On Tuesday, July 5, the price of oil fell by about 9%. It is the biggest daily decline since March 9 and so far.

The decline came amid growing fears of the risk of a global recession and restrictions in China, which could significantly reduce demand, Reuters reports.

In the financial context, the price of a barrel of “light sweet crude” oil delivered in August fell on Tuesday, July 5, to $ 99.50 (a decrease of $ 8.93).

And the price of a barrel of Brent oil in the North Sea with delivery in September fell to $ 102.77 (a decrease of $ 10.73).

The decrease in quotations also affected the value of the shares of energy companies.

In this regard, Robert Yawger, director of Mizuho: “We are dust and the only way we can explain this decline is the fear of recession. We feel the pressure. ”

Decreases and quotations for natural gas, but also among the stock markets in Europe

At present, not only oil prices fell on Tuesday, but also gas prices, all while European stock markets declined significantly.

Data on the PMI for the euro area show that it fell to its lowest level in 16 months in June, suggesting that the euro area grew by only 0.2% in the second quarter.

If we face a recession that will significantly affect energy demand, major price fluctuations could occur.

In his opinion, Andy Lipow, president of Lipow Oil Associates: “The commodity market can be quite ruthless when there is a recession and deliveries are higher than demand.”

The euro collapsed against the US dollar

On Tuesday, July 5, the single European currency fell to a rate of $ 1.03, the lowest level in two decades.

And the main reasons for this depreciation of the euro are the risks created by the invasion of Ukraine by Russia and the explosion of the price of natural gas caused by the war in the neighboring country.

As a result, Saudi Arabia, the world’s largest oil exporter, has raised the price of crude oil delivered in August to Asian buyers close to a record high due to limited supply and strong demand.