Texas oil fell 2.3% to close at $89.55 a barrel

New York, August 31 (EFE). – The price of Texas Intermediate Oil (WTI) closed negative again this Wednesday, with a decrease of 2.3%, to $ 89.55 a barrel, which adds to yesterday’s sharp drop of 5.5%. Fears of a possible global recession affecting demand.

At the end of operations on the New York Mercantile Exchange (Nymex), West Texas Intermediate crude futures for October delivery were offering $2.09 from their previous close.

The price of US benchmark crude oil fell below $90 today after starting the week with a strong 4.2% bounce due to potential cuts by Saudi Arabia-sponsored OPEC+ and political tensions in Libya and Iraq.

However, Tuesday’s decline erased all the gains as concerns about rising inflation and a possible recession threaten to dent fuel demand.

“It’s the financial market that is selling on fears of a recession, it’s a continuation of the overall bearish context,” SEB chief raw materials analyst Bjarne Schieldrop was quoted by The Wall Street Journal as saying. magazine”.

For his part, in a note to investors, Oanda analyst Craig Erlam noted that the price drop is “a small indicator of the mood in the rest of the markets at this time and of uncertainty.”

Inflation is close to double digits in many of the world’s largest economies, so many central banks are heading for sharper increases in interest rates, which could slow economic growth and hurt fuel demand.

Federal Reserve Chairman (Fed) Jerome Powell said last Friday that the central bank should continue to raise interest rates and keep them at a higher level until inflation is ensured under control.

He pointed out that “failure to restore price stability will mean more pain.”

October natural gas futures rose 8 cents to $9.12, and gasoline futures due in the same month fell 9 cents to $2.43 a gallon. EFE

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