Agencies-Gaza post
Oil prices fall to their lowest level in seven months
Analysts cite the stronger dollar and fears of a US recession as key factors
Oil prices slumped on Wednesday, with global benchmark Brent crude falling below $90 a barrel, while US benchmark WTI fell to around $85 a barrel.
The cost of November futures for Brent crude oil is down more than 4% to trade at $89.07 a barrel as of 13:35 GMT, according to data from London’s Intercontinental Exchange. Brent has fallen below $90 a barrel for the first time since Feb. 8.
October futures on WTI crude are down 2.7% to $84.58 a barrel, the first time it has fallen below $85 a barrel since Jan. 25.
Lots of analysts believe The drop in oil prices is due to a variety of factors, including a strengthening dollar and fears of a US recession, as well as ongoing Covid-19 restrictions in China.
Overall trading was choppy on Wednesday, with prices initially rising after Russian President Vladimir Putin announced the country would not supply energy to nations imposing price restraints.
However, prices later went down again.
Last Friday, the finance ministers of the G7 countries agreed on a price cap for Russian oil. The group, made up of the US, UK, Canada, Germany, France, Italy and Japan, has proposed banning insurance and financing for tankers carrying Russian oil at a price above the cap. However, some experts have warned that a cap is likely to push oil prices up rather than lower oil prices.
