The price of oil has collapsed to lows since January of this year. On fears of a global recession, Brent fell below $90, and WTI fell below $80 per barrel.
On Friday, Brent oil prices lost 11.8%, falling from $96.99 to $85.5 per barrel. WTI fell 7% from $83.92 to $78.04 per barrel. For both brands, these are the minimum levels since January this year.
The reason for the ongoing sell-off – this week will be the fourth consecutive closed in negative oil – fears of a global recession remain. In recent days, they have been warmed up by the actions of the Fed and other central banks of the world, which have raised rates.
“Fears about a hard landing for the US economy and the entire global economy are creeping into the system,” John Kilduff, founding partner of Again Capital, told Reuters.
Commodity prices are also falling due to the situation on the foreign exchange market. The dollar index soared on Friday to its highest level in two decades, hitting 112.65. This made goods priced in that currency more expensive.