NEW DELHI: Crude prices in the international market dipped on Tuesday owing to the concern of the global recession, which is expected to reduce the fuel demand. Brent Crude Future, the benchmark of global oil price declined 3.71 per cent to USD 95.20 per barrel on Tuesday while West Texas Intermediate crude oil was trading 0.37 per cent lower at USD 89.08 per barrel.
This is the first time the oil price has touched the lowest level since Russia started military operations in Ukraine. Brent prices peaked on 7 March at 139.13 when the war between Russia and Ukraine was at its peak. Since the war, the oil price has remained above USD 100 most of the time.
Meanwhile, Moody’s Analytics in a recent report on the Asia Pacific (APAC) region predicted that crude prices will fall to almost USD 70 a barrel by the end of next year. “Some of the heat has come out of oil markets in recent weeks.
Brent crude returned below USD 100 a barrel in August, with the drop gradually flowing through to lower prices at the pump. This trend will continue; we expect crude prices to fall to almost USD 70 a barrel by the end of next year.
For the APAC region’s big oil importers, notably Singapore and Hong Kong, this will ease pinching price pressures,” said Moody’s report. The report noted that Russia’s invasion of Ukraine sent shock waves through the global energy markets.