Oil prices fall on Friday, once again ending the week in the red.
The pressure on the market is exerted by fears of a recession in the global economy as a result of raising interest rates by central banks around the world. At the same time, the decline in prices is constrained by expectations of a reduction in supply on the market, including supplies from Russia.
The cost of November futures for Brent crude on the London ICE Futures exchange by 8:15 am CST on Friday is $90.17 per barrel, which is $0.29 (0.32%) lower than the closing price of the previous session. As a result of trading on Thursday, these contracts rose by $0.63 (0.7%) to $90.46 per barrel.
The price of futures for WTI oil for November in electronic trading on the New York Mercantile Exchange (NYMEX) fell by this time by $0.25 (0.3%), to $83.24 per barrel. By the close of the market on Thursday, the value of these contracts rose by $0.55 (0.7%) to $83.49 per barrel.
OPEC countries may resort to further cuts in oil production if the market continues to decline as the current level of prices affects the budgets of members of the cartel, Nigerian Oil Minister Timipre Silva said in an interview with Bloomberg on Thursday.
Fitch Solutions experts note the presence of signals of weakening demand for oil in the physical market. “The near-term outlook remains highly uncertain,” Fitch said in a review.
