A barrel of Brent-type oil was trading just above the $107 mark on Tuesday afternoon, while still holding above $114 in the morning. Oil thus wrote down nearly six percent of its value within a couple of hours.
Crisis anticipation
The price of oil, both of the Brent and WTI type, has plunged dramatically on intensifying fears about the advent of a global economic recession. Indeed, respected institutions have published a number of indicators in recent days that map the mood of investors, the corporate sphere or consumers. And they all suggest that the world is on the cusp of a crisis that, in many respests, could resemble the one of 2008 and 2009.
High inflation weighs on global economy
As a result of these indications, the risk of weakening demand for oil, which is immediately linked to economic activity, is growing. While still at the turn of last year and this year, the global economy seemed to be recovering definitively from the covid crisis, a war conflict broke out in Ukraine, which brought to life relatively high inflation, which has reached several years of highs in several countries.
