In the evening, a barrel (159 liters) of North Sea Brent for delivery in July cost 75.72 US dollars. That was $3.59 less than the day before. The price of a barrel of American West Texas Intermediate (WTI) grade for delivery in June fell by a similar amount to $72.08. At the low, oil was cheaper than it had been since the end of March.
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Market observers explained the drop in prices, among other things, with concerns about weaker economic development in China. Recently, the mood in industrial companies in the world’s second largest economy has clouded over significantly. The government’s indicator of purchasing managers’ sentiment fell below the expansion threshold of 50 points in April, pointing to a contraction in economic activity.
Compared to the beginning of the year, oil has become significantly cheaper, although some states in the oil alliance Opec+ have decided to reduce production. Above all, oil prices are being weighed down by growing concerns about the economy because large central banks have raised interest rates sharply in the fight against high inflation. The US Federal Reserve and the European Central Bank (ECB) are expected to make further hikes this week.
NEW YORK/LONDON (dpa-AFX)
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