Business Maverick: Oil Falls Below $90 for First Time Since War as Demand Slows

West Texas Intermediate dropped below $90 a barrel, a level last seen in the weeks leading up to Russia’s invasion of Ukraine. This week’s descent was touched off by government data showing Americans arethan they did in the summer of 2020. Fears of an economic slowdown have intensified along with the potential impacts on crude demand.

Prices falling below $90 a barrel “is quite remarkable given how tight the market remains and how little scope there is to relieve that,” said Craig Erlam, senior market analyst at Oanda. “But recession talk is getting louder and should it become reality, it will likely address some of the imbalance. Just not in the way we’d like.”of Ukraine in February.

Despite the recent price weaknesses, Saudi Arabia raised its oil prices for buyers in Asia to a record level, a sign the world’s largest exporter sees the region’s market remaining tight. OPEC+ agreed to boost supply by a meager 100,000 barrels a day in September, while issuing a stark warning on “severely limited” spare capacity.Brent for October settlement fell $1.32 to $95.46 a barrel.

The oil market continues to be in backwardation, a bullish pattern in which near-term contracts are trading higher than later-dated ones, yet key differentials have narrowed. WTI’s nearest backwardation fell below $1 a barrel this week for the first time since April, signaling that underlying physical tightness is easing off as the peak summer driving season is coming to an end.

The extremely modest output increase from OPEC+ came despite a visit by Joe Biden to Saudi Arabia last month, when the US president urged producers to add supplies as part of his efforts to rein in inflation. Still, his administration can take heart from the steady retreat in average retail gasoline prices, which have dropped by almost $1 a gallon since hitting a record in mid-June.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Ukraine: UN’s chief blasts ‘immoral’ oil and gas profitsUnited Nations secretary-general António Guterres skewered global energy companies, saying it’s “immoral for oil and gas companies to be making record profits from this energy crisis” spawned by the war in Ukraine. He called for nations to impose excess profit taxes.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Stocks stabilise as traders weigh US-China tension: markets wrapStocks stabilised in Asia on Wednesday, helped by a climb in Hong Kong, as some of the investor anxiety over fraught US-China ties eased. Treasuries pared a slide sparked by hawkish Federal Reserve comments.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Pelosi Vows US Won’t Abandon Taiwan in Face of China ThreatsHouse Speaker Nancy Pelosi pledged that the US wouldn’t abandon Taiwan, reaffirming American support for the democratically elected government in Taipei despite threats of fresh trade curbs and military actions by Beijing.
Source: dailymaverick - 🏆 3. / 84 Read more »

Malawi Government Demands U.S.$309.6 Billion From Us Company for Illegal MiningUnder instructions from the Minister of Finance, Malawi's Attorney General, Thabo Chakaka-Nyirenda has written Columbia Gem House of Vancouver, USA demanding US$309.6 billion as claim for unpaid tax revenue in respect of ruby and sapphire minerals extracted from Chimwadzulu Mine in Ntcheu District by the US company's subsidiary, Nyala Mines Limited.
Source: allafrica - 🏆 1. / 99 Read more »