Oil in the global market has been observing some volatile behavior in recent weeks. On Tuesday, 12th July, it was reported that oil posted a sharp decline as US trading commenced.
This new drop in oil prices may be attached to concerns about a global economic slowdown. Meanwhile, West Texas Intermediate lost as much as 6.9% to slip under USD97 a barrel while Wall Street trader lower while the dollar rose.
Oil in the US trading market shows bearish sentiment over rising virus cases in China and a possible and impending US inflation data stoke concerns about demand.
“Crude trading under extreme pressure this morning as a defensive posture continues with consumer sentiment still in a depressed mode along with a Covid resurface in China,” said Dennis Kissler, the Senior Vice President of trading at BOK Financial.
Despite recession fears, many of the energy administrations coincide that the supply constraints are expected to worsen with International Energy Agency’s Executive Director Fatih Birol quoted stating that the nations “might not have seen the worst” of the global energy slip while OPEC’s first look for 2023 had not shown any sight of relief from oil market tightness.
While crude prices have once again stumbled, it is yet to be seen if this well have any larger effect on the global economies including the Maldives which solely depends on imports of oil, as it does not produce any of its own.