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Oil Expected To Drop for the Second Week in a Row

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Oil Expected To Drop for the Second Week in a Row


Oil should drop for the second week in a row

Oil fell on Friday after concerns over declining Chinese demand and future Federal Reserve interest rates caused it to lose its early gains. It was heading for its second weekly loss. According to some sources, China is trying to reduce crude oil imports from certain exporters. However, some Fed officials have made comments this week that have scuttled any hopes of a slowing down in aggressive US rate increases.

Bullish price drivers are currently in short supply. However, the EU embargo against Russian crude oil will be lifted in less than three months. This could mean that oil prices may end the year with a bang. Brent crude fell 7.1% to $89.71 a barrel. West Texas Intermediate (WTI), crude oil in the United States increased 9 cents or 0.1% to $81.73.

Both indices are heading for a second weekly decline. Brent should fall over 6.12%, and WTI 8.123%.

Despite the European Union’s impending ban on Russian crude oil by December 5, and OPEC+ tightening supplies, recession fears have dominated this week. As a result, Brent futures have dropped to as low as $4.28 per barrel since August.



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