Price of crude oil drops to nearly $90 per barrel
A barrel of crude oil is currently selling for about $90 after rising close to $130 in March 2022 due to Russia’s invasion of Ukraine.
This is the lowest price in six months for the commodity. However, according to JoyBusiness, the reasons for the price drop are complicated.
On production, OPEC+ has announced an increase in oil output of 100,000 barrels per day.
Meanwhile, if crude prices continue to fall, prices of petroleum products on the local market will fall the most in the next pricing window on August 15, 2022.
Yet, in Ghana, the cedi’s depreciation may prevent a significant reduction at the pumps. Fuel prices in the country reduced by 3% to 6% at the beginning of August.
Tina Teng, a CMC Markets analyst also noted, “Crude oil fell further on demand concerns on a cloudy economic outlook.
“If commodities are not pricing in an imminent economic recession, they might be preparing for a ‘stagflation’ era when the unemployment rate starts picking up and inflation stays high”, she added.
Source: Energy Ghana