Oil prices rise after last week’s collapse

Oil prices rose on December 12 after a record fall in more than eight months following the results of the past week, reported from Interfax.

The cost of February futures for Brent on the London ICE Futures exchange amounted to $76.53 per barrel, which is $0.43 (0.57%) higher than the closing price of the previous session. As a result of trading on December 9, these contracts fell by 5 cents (0.1%) to $76.1 per barrel.

The price of futures for WTI oil for January on the electronic trading of the New York Mercantile Exchange (NYMEX) is by this time $71.59 per barrel, which is $0.57 (0.8%) higher than the final value of the previous session. As a result of the last session, the contract fell in price by $0.44 (0.6%) to $71.2 per barrel.

As a result of last week, Brent fell in price by 11.1%, WTI decreased by 11.2%. Both contracts ended trading at their lows since December 2021.

The main negative factor for oil quotes last week was fears about a recession in the global economy and demand for fuel in China.

Traders are afraid that against the backdrop of data on maintaining a high level of business activity in the US and rather high inflation, the Fed will continue to adhere to a tight monetary policy and will not rush to cut rates. This could slow down economic growth in the US and the world as a whole, or even lead to a global recession, which will reduce the demand for fuel.

In addition, investors assessed the introduction of a price ceiling for Russian oil and news about the easing of coronavirus restrictions in China.

Meanwhile, the number of active US oil rigs fell by two units last week to 625, oilfield services company Baker Hughes said. The index fell for the first time in six weeks.

www.anews.az