During the morning of this Friday, Crude oil prices fell around 5%, registering the lowest price in the last eight months. The drop was supported after the US dollar hit its strongest level in more than two decades, on top of concerns that higher interest rates will trigger a recession in major economies.
Last Wednesday, September 21, Federal Reserve Chairman Jerome Powell announced a 75 basis point increase in the interest rate, in order to follow the path to return inflation to 2%. “Without price stability, the economy doesn’t work for anyone. In particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all,” he noted.
Following the Fed’s decision, central banks around the world followed suit and raised interest rates, increasing the risk of an economic downturn.
In the meantime, the dollar index or DXY, which tracks the behavior of this currency against a basket of the six most important currencies, registers one of its highest historical levels. As of 1:12 pm ET, it stands at 112,573 units, according to Investing.com, one of the largest finance portals.
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Prices of a barrel of Brent and Texas oil today, September 23: how much does it cost and how much is it quoted?
This Friday, at 12:56 pm ET, US West Texas Intermediate (WTI) crude is down $4.70, or 5.63%, trading at $78.79. Secondly, Brent futures are trading at $86.09 dollars per barrel, down $4.37, or 4.83%, according to OilPrice.com.
This puts both benchmarks in technically oversold territory. In accordance with Reuters, WTI is on track for its lowest close since January 10, while Brent is headed for its lowest close since January 13. This week West Texas Intermediate fell around 7% and Brent fell 6%.