Europe

The price of a barrel of oil sinks due to fears of recession

The price of a barrel of oil sinks due to fears of recession

July 5. () –

The price of a barrel of oil plummeted around 9% this Tuesday and fell to a minimum since last May around 100 dollars as a result of fears that the impact of inflation on demand will lead to a recession.

In the case of Brent oil, a reference for Europe, the price of a barrel fell this Tuesday to 102 dollars, at a minimum since last May 11, with a reduction of 8.6% since the closing of the trading session. Yesterday.

On its side, the barrel of West Texas Intermediate (WTI) crude oil fell to $98.32 from $108.43 at the close on Monday, a drop of 9.3%, to the lowest since May 11. .


The composite PMI for the euro zone, one of the main leading indicators of activity, fell in June to a 16-month low as a result of the impact of price increases and the deterioration of economic expectations, fueling fears that the “decline” of the bloc’s economy leading to a recession.

The fear of a contraction of the euro economy may thus weigh on the ECB’s spirit when it comes to undertaking a more aggressive normalization of its monetary policy, after announcing a rate hike of 25 basis points in July, the first since 2011 , and yet another in September, the intensity of which will depend on inflation forecasts.

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