Crude oil prices once again took a dip today amid concerns about a potential global recession.
Today, the Brent crude oil price reached $91.51 per barrel which is over six percent less than what it was a week ago. On August 10, the Brent crude oil price was $97.40 per barrel.
Reasons behind fall in crude oil price
The economic data from China is responsible for the fresh concern. The data showed that the country’s economy slowed down in the month of July due to the zero-covid policy.
As China is the world’s largest crude importer, the slowdown in the country’s economy will result in a significant drop in energy demand.
The United States is also responsible for the drop in crude oil price as it is expected that the country’s shale oil will rise to 9.049 million bpd in September.
Apart from the above development, the crude oil supply in the market will increase if Iran and the United States agree to the nuclear deal.
