Weak European economic data drags down black gold prices
Oil prices fell for the third session in a row after a series of economic data from Germany, the euro zone and Britain painted a picture of a downward trend that may affect demand for oil.
Brent crude futures fell $1.76, or two percent, to $88.07 per barrel at settlement, while US West Texas Intermediate crude futures fell $1.75, or 2.1 percent, to $83.74 per barrel.
Data showed that business activity in the euro zone took a sudden turn for the worse this month, indicating that the bloc may slide into recession.
German data indicated that the country will witness a wave of recession, while British companies announced another decline in activity this month, confirming the risk of exposure to a recession before the Bank of England’s decision on interest rates next week.
The two crude oil standards fell more than two percent yesterday, Monday, with the intensification of diplomatic efforts in the Middle East, the largest oil supply region in the world, to contain the escalation in Gaza.
A preliminary poll conducted by showed that US crude inventories are expected to rise last week while distillate and gasoline inventories fall.
The IEA also said it expects demand for fossil fuels to peak by 2030 based on current governments’ policies.