Oil Price Drops Below US$ 100/Barrel

Oil Price Drops Below US$ 100/Barrel

World oil prices fell again in trading this morning. What's the article?

On Wednesday (11/5/2022) at 06:53 WIB, the price of Brent oil was at US$ 102.46/barrel. Collapsed 3.28% from the previous day's closing position.

Meanwhile, the light sweet type or West Texas Intermediate (WTI) costs US$ 99.43/barrel. Down 3.55%.

The price of the black gold is in a negative trend. In the past week, Brent and light sweet prices fell 3.35% and 3.44% point-to-point, respectively.

"The oil market has been volatile lately. The European Union hasn't decided whether or not to embargo Russian oil. The market hasn't got a clue," said John Kilduff, partner at Again Capital LLC, as quoted by Reuters.

Last week, the market was shocked by the European Union's plan to 'ban' oil from Russia. The policy is said to be included in the latest package of sanctions for the Red Bear Country for its attack on Ukraine.

However, until now there has been no further clarity. Because the sanctions for the Russian oil embargo must be agreed by acclamation. But there are still countries that refuse, for example Hungary.

In addition, another factor weighing on oil prices is the prospect of a slowdown in the world economy. Tightening monetary policy by central banks in various countries and regional quarantines (lockdowns) due to the corona virus pandemic (Coronavirus Disease-2019/Covid-19) in China are very risky making it difficult for the global economy to grow high. As a result, the demand for oil will also be restrained.

"The combination of China's lockdowns and rising interest rates in various countries to fight inflation is raising concerns about slowing economic growth," said Tamas Varga, a broker at PVM Oil Associates.