Crude Price: There is a softening in the price of crude oil due to the fear of economic recession in America


New Delhi: In the early trade, the price of crude oil registered a weakness on Friday. There has been a lot of volatility in the price of crude oil since the last one week, while the concerns related to the supply of crude oil have increased due to the increasing fear of recession around the world. Inflation in the US is at a 4-decade high and next week the Federal Reserve is expected to increase interest rates by up to 1 percent. Experts from all over the world have said that after this America can get caught in the vicious cycle of economic recession. Brent crude futures fell 22 cents, or 0.2%, to $90.62 per barrel in early trade on Friday. It has weakened by 3.5 percent in a week.

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US West Texas Intermediate crude futures recorded a weakness of 25 cents and fell 0.3 per cent to $84.50 per barrel. In the last trading session also, it had lost 3.8%.

Experts say that the price of crude oil is falling continuously because the focus of the market is going on the economic slowdown. Experts around the world feel that if the Federal Reserve increases interest rates, then America’s GDP growth will go into negative and America may be caught in the cycle of economic recession.

For the third day in a row, there was a loss in the rate of crude oil and this loss increased further due to the strengthening of the US dollar. Due to the weakening of other currencies, now buying crude oil is becoming increasingly expensive.

Experts of the commodity market say that the demand for crude oil from China is already going to be weak and now if America also gets caught in the economic slowdown, then the demand for crude oil from there will also weaken. Due to this, there can be a huge fall in the price of crude oil at the global level.

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