At the time of writing (June 23rd 2023) Brent Crude stands at 73.41 USD. It has had a bad few days coming off of 76 USD a barrel. Over the longer term this is down from $86 at the end of last year and significantly lower than the $112 it reached in June 2021.
The declining price of oil is raising concerns about the global economy. Despite production cuts announced by OPEC+ (the Organization of Petroleum Exporting Countries plus Russia), Brent crude oil prices continue to drop. This indicates a slowdown in global growth and heightens the risk of a worldwide recession.
The price of oil is influenced by the balance of supply and demand. When supply is reduced, as was the case with the OPEC+ production cuts, one would expect prices to rise. However, if the demand for energy further declines, crude oil prices will fall. Unfortunately, that appears to be the current situation.
The decrease in demand is closely tied to a reduction in economic activity across variou ...
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