Why is the price of crude oil falling? Brent to lowest since the start of the Russo-Ukrainian war
Oil fell near the lowest level since the start of the war in Ukraine on Friday on fears of a global recession, although stocks ignored those worries, rising ahead of a set of US jobs data. provides another clue to the health of the world’s largest economy. Brent crude futures rose to $94.23 per barrel and US crude futures were also slightly higher at $88.70 per barrel, after both closed the previous session at their lowest levels since February. The loss was partly due to Wednesday’s data showing a spike in US inventories last week.
“It’s a combination of inventory data and a little bit of demand anxiety. Because the market is worried about growth more than inflation – although inflation is still a major issue – oil prices have declined. reduced,” said Prashant Bhayani, director. Asia investment specialist at BNP Paribas Wealth Management.
In another warning sign for the global economy, the closely watched portion of the US Treasury yield curve that measures the gap between yields on 2- and 10-year Treasuries hit 39, 2 basis points overnight, the deepest reversal since 2000.
An inverted curve is often seen as indicative of a recession.
On Friday morning, the 10-year yield was 2.6865% and the two-year yield was 3.0509, leaving the gap between them still large at 36.6 basis points.
“The bond market sees a fairly high probability of a recession, while the equity market focuses on the labor data,” said Bhayani.
MSCI’s index of Asia-Pacific shares outside Japan rose 0.74%, helped by gains from TSMC, the heavyweight index, up 1.8%, regaining levels lost earlier in the week due to the visit. by US House of Representatives Speaker Nancy Pelosi. to Taiwan.
Japan’s Nikkei rose 0.43%.
US employment data, due later in the day, is expected to show nonfarm payrolls rose 250,000 jobs last month, following a 372,000 increase in June.
“We are waiting to see the labor market decelerate, so if we miss a lot, that will ultimately confirm the labor market is slowing and we should see some more rallies.” in the US treasury If it will beat everyone Bhayani said: “ Oh, in the end it will miss”.
In the currency market, the dollar index, which measures the greenback against six major currencies, was at 105.86, down 0.6% overnight along with falling US yields.
The pound fell sharply at $1.2142 after turning around overnight as the Bank of England raised interest rates and warned of a protracted recession approaching in the UK.
Spot gold was steady at $1,790 per ounce.
