On Tuesday, the price of a barrel of Brent oil from the North Sea closed below $100 for the first time in nearly three weeks. OPEC warns that the Russian invasion of Ukraine threatens to weaken the demand for oil.
The barrel (159 liters) for delivery in May closed down 6.53 percent at $99.91. During the trading day, the price has already fallen below $100 several times. This is the first time since the second day of Russia’s invasion of Ukraine that the border has been closed.
A barrel of US West Texas International oil for delivery in April fell 6.37 percent to $ 96.44.
Raw materials quickly became more expensive soon after the war began, as did many other materials and fuels. Ultimately, this could cause inflation so high that companies and households have less money for gasoline or other oil products, the OPEC cartel warns.
“This conflict has led to a number of problems, including rising commodity prices, which have led to increased inflation globally,” OPEC wrote in its monthly oil market report. “If this continues, it will lead to a decline in consumption and investment.”
The warning is stark. OPEC agreed with allies like Russia and Kazakhstan to pump a little more oil each month, after a sharp production cut due to the Corona crisis in 2020. The United States, which is not part of the alliance, recently made an unsuccessful request. Saudi Arabia, the unofficial leader of OPEC, to put more pressure on the oil faucet.
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After the invasion of Ukraine, the price of oil rose to its highest level in nearly 13 years, which, among other things, led to record prices for gasoline at gas stations. Meanwhile, the price of oil has fallen again. But concerns remain that oil from Russia, one of the world’s largest oil producers, will no longer be available due to war or sanctions.
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