Crude oil prices fell, during today’s trading, Tuesday, February 21 (2023), by 1.1%, due to fears of a slowdown in the global economy and a decline in fuel demand.
The decline in the price of a barrel of oil globally comes hours after prices achieved gains at the close of transactions yesterday, Monday, February 20, as Brent crude rose to approaching the barrier of $84 per barrel, which was positively reflected on investors, according to what was published by Reuters.
The decline in crude oil prices is also due to the sharp rise in interest rates by the US Federal Reserve, which prompted investors to take profits, according to data seen by the specialized energy platform.
Crude oil prices today
By 7:00 AM GMT (10:00 AM Mecca time), the price of Brent crude futures (delivery April 2023) fell by 96 cents, or 1.1%, to reach $83.11 per barrel.
The prices of West Texas Intermediate crude futures (delivery March 2023), which expire today, Tuesday, also fell to $76.34 a barrel, according to information seen by the specialized energy platform.
Yesterday, Monday, West Texas crude futures did not witness stability due to an official holiday in the United States, as contracts for April delivery, which is currently the most active, rose to about $76.57 a barrel.
It is noteworthy that the past week, ending on February 17, saw Brent and West Texas Intermediate crude recording losses of about 4% and 4.2%, respectively.
Oil market analysis
Satoru Yoshida, an analyst at Rakuten Securities, said that Brent crude has been in the middle of a trading range since late December 2022, between $78 and $88 a barrel, with some investors taking profits due to concerns about an increase in US interest rates.
He added, “Others kept bullish sentiment on hopes for a recovery in demand in China…and the market is likely to remain in this narrow range until there are clearer indications about the future direction of US monetary policy and the path of economic recovery in China.”
Attention is now turning to monetary policy in the United States, which is the largest economy in the world and the largest consumer of oil as well, with the possibility of China’s oil imports rising to record levels this year, with rising demand in India.
In turn, an analyst at “Wanda” Edward Moya said that the Chinese demand for Russian oil has returned to the levels that preceded the Ukraine war, explaining that the West will try to pressure China and India to search for alternative sources that would keep the oil market in a state of coherence, without harming oil prices. Crude Oil.
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