Crude oil prices fell this week on the second trading day in a row due to weak economic data from both China and the United States.<\/p>\n\n\n\n
WTI futures price fell below $70 per barrel for the first time since December 2023, while Brent futures fell below $74 per barrel, a level not seen for nine months.<\/p>\n\n\n\n
Both indicator oil futures since their last peak on August 27 %It has fallen more than 10 times.<\/p>\n\n\n\n
While the wave of sales in Nvidia-led technology stocks has led to a collapse in global markets, the risk-avoidance trend has also contributed to the downward pressure on the oil market.<\/p>\n\n\n\n
The CBOE Volatility Index, known as the fear indicator of the markets, rose above 20 \u2047 , the highest level in a month, as investors fled risky assets with increasing fears of recession.<\/p>\n\n\n\n
By the end of August, the escalation of the military conflict between Iran and Israel and the production cuts in Libya had caused oil prices to rise.<\/p>\n\n\n\n
But while concerns of a wider regional war have waned, fears of a recession have precluded geopolitical tensions, and a possible solution to the Libyan conflict is expected to restore oil production.<\/p>\n\n\n\n
Fears of recession are rising<\/p>\n\n\n\n
A series of disappointing data from the U.S. has raised concerns that economic conditions are deteriorating and oil demand will weaken.<\/p>\n\n\n\n
The world's largest economy reported a weaker-than-expected Manufacturing Purchasing Managers' Index (PMI), which pointed to four consecutive months of contracting factory activity in August.<\/p>\n\n\n\n
JOLTS job postings data released on Wednesday showed that the number of available jobs has fallen to its lowest level since January 2021.<\/p>\n\n\n\n
Deteriorating economic data significantly increased the likelihood of a deeper interest rate cut by the Federal Reserve next month, with U.S. 2-year and 10-year government bond yields briefly shifting to positive territory after their reversal for the second time since 2022.<\/p>\n\n\n\n
Short-term government bond yields are generally more susceptible to changes in interest rates in the near term.<\/p>\n\n\n\n
Historically, economic recession tends to occur when the difference between the two indicators U.S. government bond yield shifts back to the positive zone after reversal.<\/p>\n\n\n\n
In addition, China, the world's largest oil importer, reported a weaker-than-expected Manufacturing PMI over the weekend, showing that factory production continued to contract for the third consecutive month in August.<\/p>\n\n\n\n
China's Caixin Services PMI, announced on Wednesday, also fell short of expectations, showing that the country's economic recovery continues to weaken.<\/p>\n\n\n\n
OPEC+ could delay production growth<\/p>\n\n\n\n
According to Reuters, OPEC+ may postpone its planned production increase in October in the face of falling oil prices.<\/p>\n\n\n\n
The organization had previously agreed to increase production by 180,000 barrels per day as part of its plan to phase out production cuts.<\/p>\n\n\n\n
Ongoing production cuts may provide some support to the weakening crude oil market, but this news did not push prices up immediately due to a tendency to avoid the current risk.<\/p>\n\n\n\n
In June, OPEC and its allies agreed to extend production cuts of 3.66 million barrels per day until the end of 2025, with voluntary cuts continuing through September this year.<\/p>\n\n\n\n
The world's total oil supply %The organization, which provides more than 37 \u2047 , has been reducing production since 2022 \u2047 , and this is the reason why global demand %It caused a daily cut of 5.86 million barrels, which corresponds to 5.7 \u2047 .<\/p>","protected":false},"excerpt":{"rendered":"
Crude prices slumped following weak economic data from the US and China, which dampened demand outlooks. Risk-averse sentiment continued to dominate global markets.<\/p>","protected":false},"author":1,"featured_media":1960,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[261,330,260,253,314],"class_list":["post-1959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-genel","tag-cut","tag-day","tag-oil","tag-per","tag-price"],"_links":{"self":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts\/1959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/comments?post=1959"}],"version-history":[{"count":0,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts\/1959\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/media\/1960"}],"wp:attachment":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/media?parent=1959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/categories?post=1959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/tags?post=1959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}