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WTI oil opens 3.33% down to $80.71

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The price of texas intermediate oil (WTI) opened this Friday, September 23, with a deep drop of 3.33%, to US$ 80.71 a barrel, with investors once again concerned about the threat of a global recession and interest rate hikes. by different central banks.

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As of 9:00 am local New York time (13:00 GMT), WTI futures contracts for October delivery were down $2.78 from the previous session’s close.

The American benchmark oil, which yesterday closed in positive, is on track to close a new weekly global in redafter last Friday the price of a barrel concluded at US$ 85.11.

“Central banks now seem to accept that a recession is the price to pay to control inflation, which could affect demand next year,” Oanda analyst Craig Erlam told the EFE news agency.

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This Wednesday the United States Federal Reserve (Fed) raised interest rates by 75 basis points to a range between 3 and 3.25%, the highest level in the last 14 years.

Likewise, the Bank of England raised interest rates in the United Kingdom by 0.50 percentage points a day later, to 2.25%, its highest level since December 2008.

Investors fear aggressive central banks will affect consumer spending, including fueland that at a general level leads the economy to a recession.

Although there are several bullish factors at play, such as the ukrainian war, the blocking of the nuclear agreement with Iran, which is linked to the return of Iranian oil to international markets and the possibility that the OPEC countries reduce their production at a current time of tense balance between supply and demand. The recession seems to have imposed itself this morning on investor sentiment.

With information from efe

Source: Larepublica

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