The Texas Intermediate (WTI) oil price opened this friday with a drop of 1.23% and stood at $89.36 a barrelfalling back below the $90 barrier in the face of continuing fears of a global recession.
At 09:00 local time New York (1300 GMT), WTI futures contracts for delivery in September subtracted 1.11 dollars from the close of the previous session.
Oil prices fell on Friday after two days of gains and are headed for weekly losses on the strength of the dollar and the weight of concerns about a global economic slowdown.
On Monday, the price of crude fell below $90 a barrel due to poor economic data from major oil buyer China.
In addition, fears of a global recession increased after the United Kingdom announced that the consumer price index (CPI) stood at 10.1% in July, compared to 9.4% in the previous month, so stands at the highest level in more than 40 years.
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However, the price of black gold rallied again after the Energy Information Administration (EIA) announced that US commercial crude oil stocks fell 7.1 million barrels in the week ending August 12 , up to 425 million barrels and that US crude oil exports reached 5 million barrels per day.
Analyst Tom Essaye in a report by the firm Sevens Repor points out that another reason why the price of crude oil increased is due to the comments made by OPEC Secretary General Al Ghais, who said that it is not an easy task to replace the lost Russian barrels on the global market.
Al Ghais added that the lack of investment will become a critical headwind for growers trying to meet rising demand in the years to come.
“Oil is trying to establish a new support level in the mid $80s. And while the short-term trend is down, we will look for the market to build more support in the coming sessions as traders pull back and re-evaluate,” adds Essaye.
