Oil continues to fall in price due to sufficient supply
In addition, interest rate hikes by the Fed and the ECB may have a negative impact on the economy
Oil prices have intensified their decline ahead of the publication of the US Department of Energy's weekly report on energy reserves in the country. Traders are also worried that the Fed and ECB's interest rate hikes will have a negative impact on economic growth.
Source: Reuters
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The cost of June futures for Brent on the London ICE Futures exchange by 15:00 on Wednesday is $83.17 per barrel, which is $1.6 (1.89%) lower than the price at the close of the previous session.
During today's session, their price dropped below $83 per barrel for the first time since the end of March. Earlier in April, the contract price reached a five-month high of $87.5 per barrel.
The price of WTI futures for May in electronic trading on the New York Mercantile Exchange (NYMEX) fell by $1.53 (1.89%) to $79.33 per barrel by 15:00.
This month, the contract price also reached a five-month high of $83.5 per barrel.
Experts on average expect that oil reserves in the United States fell by 1.088 million barrels last week, according to Trading Economics.
Analysts and traders surveyed by The Wall Street Journal predict a decline of 500,000 barrels.
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