The price of Brent crude oil has fallen within sight of the $80 per barrel mark. Black gold has thus been the cheapest since the middle of January this year. North American WTI crude is even trading at prices that prevailed on the market last December.
The price of Brent and WTI oil fell
Brent crude was trading close to $80 a barrel at the start of the last week of November. North American WTI even fell below 75 dollars. Both Brent and WTI are currently trading at their lowest prices in nearly a year.
Oil falls due to measures in China
The main reason for the price decline of black gold is the growing concern about the decline in Chinese demand. China is still promoting a policy of zero tolerance for covid, and its draconian anti-epidemic measures will once again have a negative impact on the country’s economic performance.
On the global oil market, there is also growing nervousness associated with the upcoming meeting of the OPEC+ group and the expected introduction of a price ceiling on Russian oil by the G7 countries. The countries of the OPEC+ group will most likely discuss further restrictions on oil production in order to achieve an increase in its price. There is talk behind the scenes of a cut of two million barrels per day during 2023.