For the first time since Russian aggression erupted in Ukraine, the price of Brent crude oil has gone below $80 a barrel. It costs about the same as at the beginning of this year. Concerns about the faltering European and Chinese economies are to blame.
Boundary $80
The price of a barrel of Brent crude oil plunged as high as $79.35 in Wednesday trading, a drop of about four percent. North American WTI type crude oil weakened 3.5 percent to $74.25. In both cases, these are the lowest levels since the start of this year, and for the first time ever, any oil has traded below the $80 mark since Russia’s military aggression began in Ukraine.
Gradual cheapening
Oil has discounted by more than one percent for the day over three consecutive sessions, writing off almost all of the gains from this year. On the other hand, growing fears about the arrival of an economic recession in Europe and a slowdown in China’s economy, and OPEC+ Group’s decision not to restrict black gold mining further, are to blame.
According to experts, the price of oil could be kept at such low levels for longer. There is practically no strong factor to turn the trend set up.
