The beginning of March brought a sharp drop in oil prices on world markets. Thus, last week oil prices fell by more than three percent. Investors fear weakening demand, given that central banks are raising interest rates to slow down economic growth and thus suppress inflation.
The price of a barrel on the London market slipped last week by 3.5 percent to $82.78; on the American market, a barrel fell 3.7 percent to $76.68. In the morning trading, the prices of this energy product fell on both markets, so Brent oil currently costs $81.33, while WTI oil is sold for $75.33 per barrel, according to data published on the OilPrice website.
After the rise recorded a week earlier, oil prices were under pressure last week as it became increasingly clear that the Fed will raise interest rates more than expected due to elevated inflation.
This means the oil demand will weaken because the growth of the world’s largest economy and the largest oil consumer will slow down.
Traders became worried after Jerome Powell, the chair of the Federal Reserve, alerted people halfway through last week that the interest rates may rise faster and higher than anticipated.
Oil prices are close to $82 on world markets
Oil prices remained below $82 on international markets on Friday, pressured by fears that more aggressive interest rate hikes in the USA will slow down the economy and demand for the energy product.
On the London market, the price of a barrel was 21 cents higher afternoon than at the previous close of trade and amounted to $81.8. In New York, the barrel traded at an almost unchanged price of $75.82.