London, Thursday, 28 July 2022
Crude oil prices fluctuated dramatically on Thursday, first rising to almost $100 per barrel on the back of declining US inventories and signs of increased demand, then dropping to almost $96 per barrel amid worries that a slowing economy will reduce demand for fuel, and finally rising as risk appetite improved once more.
Fears of aggressive rate increases destroying demand have gripped the commodity markets, but ongoing supply-side problems and different interruptions have kept the global market constrained and energy prices high.
The most recent data revealed that the largest economy in the world unexpectedly shrank for a second quarter in Q2, escalating recessionary fears.
After EIA data revealed that US crude stockpiles dropped by 4.52 million barrels last week while exports increased to a record 4.55 million barrels per day, WTI crude prices surged by 2.4 percent on Wednesday. In addition, US gasoline demand rose 8.5 percent week over week while stocks fell by 3.3 million barrels.
(Source: Trading Economics // Edit and reporting by: The Decision Maker – Finance editors)