The price of crude oil fell to the level of January on Friday.
Crude oil prices have been falling sharply on Friday following fears of a recession spreading in the market.
Read more: The economy of the euro area is slipping into the bottom: “The probability of a recession is very high”
The price of North Sea Brent crude oil fell by more than four percent on Friday to approximately USD 86 per barrel. The last time the price of the reference quality was as low was in mid-January.
The price of US WTI quality, on the other hand, already fell below 80 dollars per barrel. The price of the reference quality slipped five percent to 79.23 dollars per barrel. The price is cheaper than ever since January 11.
Oil prices have been on a downward trend for several weeks now, as concerns about a recession have begun to arise.
This week, several central banks, including the Bank of America and the Bank of England, have raised their key interest rates. The tightening of financial conditions around the world increases expectations of a slowdown in economic growth, which generally means a decrease in energy demand.
“The market is worried about growth and it causes the prices of raw materials to fall,” says Saxo Bank’s head of commodity markets Ole Hansen For The Wall Street Journal.
Crude oil prices started to rise sharply in February after Russia started its extensive war of aggression in Ukraine. At its highest, the price of Brent reference quality was almost 130 dollars per barrel in March.
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