Brent Crude Oil Fell to a Two-Week Low
OREANDA-NEWS The price of Brent crude oil at the auction on Monday, April 25, fell to the lowest in the last two weeks. The cost of June Brent futures fell to $101.66 per barrel, which is 4.7% lower than the last closing price and the lowest value since April 12. At the time of publication (11:50 Moscow time), Brent was trading at $101.98, falling by 4.38% by the close of the last session.
June contracts for WTI on April 25 also fell by 4.7% and were trading at $97.25 per barrel at the minimum for the day. According to data at 11:50 Moscow time, WTI oil cost $97.5, falling by 4.48% to the last close.
Oil is getting cheaper on fears of falling demand and slowing global economic growth amid the ongoing lockdown in Shanghai and a possible increase in the key rate in the United States, writes Reuters. «Oil is falling due to the impact on consumption in China, while the Federal Reserve is raising interest rates to slow down the growth of the US economy», the agency quotes Steven Innes, managing director of SPI Asset Management.
US Federal Reserve Chairman Jerome Powell said earlier that an interest rate increase of 0.5 percentage points «will be considered» at a meeting of the regulator in May.
«However, oil prices are unlikely to continue to decline and may even rise against the background of possible EU sanctions against Russian oil and gas. "Oil prices are not expected to fall below $90 per barrel due to a possible EU ban on Russian oil imports amid the deepening Ukrainian crisis», said Hiroyuki Kikukawa, Research Director General at Nissan Securities.
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