The price of fuel has fallen again in the world market. Oil prices fell on Wednesday (Aug 31) as the world economy falters, oil demand signals from OPEC+ and investor concerns over increased restrictions in China to curb the spread of Covid-19, news agency Reuters reported.
Brent crude futures for October were down $2.78 a barrel due to expiration on Wednesday. The price for the November contract was $96.47 per barrel. But even from here, the price fell by $1.37 or 1.4 percent.
U.S. West Texas Intermediate (WTI) crude futures were down $1.31, or 1.43 percent. The price fell to $5.37 in the previous session.
Both contracts fell more than 3 percent in earlier trade.
PVM Oil Associates analyst Tamas Varga said, ‘The latest signs of an ongoing recovery is the contraction in Chinese factory activity in August. The pace of the country’s service sector is also slower than expected. Meanwhile, the Fed and ECB are expected to raise interest rates significantly next month.’
The interest rate is likely to be 0.75 percent. Analysts fear that investors may turn away as a result.
Analysts say China’s factory activity slowed in August due to new Covid infections. The country is also going through its worst heat wave in decades. From this it can be assumed that the country will struggle to maintain the speed of the economy.