Oil price in global market lowest in 5-months

Industry Report: Crude oil prices have been falling for quite some time in the international market. It rose slightly on Friday (August 5), but its weekly price is at a five-month low.
Experts believe that prices are falling due to fears that the demand for oil may decrease due to a possible economic recession.
According to news agency Reuters, the price of crude oil benchmark Brent crude rose 80 cents to 94.92 US dollars per barrel last Friday, which is 11 percent lower than the previous Friday. In addition, the price of West Texas Intermediate (WTI) in the United States increased by 47 cents to 89.01 dollars per barrel, which is eight percent less than the previous week.
Earlier, Brent fell 2.75 percent to $94.12 a barrel on Thursday, the lowest since February 21. And WTI fell 2.3 percent to $88.54, the lowest since February 3.
Oil prices suddenly hit $120 a barrel earlier this year after a historic fall during the worst days of the coronavirus pandemic. This is believed to be due to an increase in demand for oil to cope with the shock of the Corona period and the impact of sanctions on Russia, a major supplier of energy, due to the invasion of Ukraine.
However, due to fears of economic recession in the US and Europe, debt crisis in emerging markets and the ‘Zero Covid’ policy of China, the world’s largest oil importer, the future demand for fuel oil is still not very promising.
Craig Erlam, senior market analyst at Wanda, a London-based forex company, said there is a real possibility of oil prices falling below $90 per barrel. It will depend on how much pressure the market is under and how much recovery there is.
Apart from this, there is a growing concern that economic activity will slow down due to interest rate hikes and energy demand will decrease. The Bank of England raised interest rates last Thursday and warned of a possible recession.