The price of crude oil continues to fall as the commodity —which peaked at more than $130 barrels in March 2022— has given up all the gains triggered by Russia’s war on Ukraine, falling to nearly $90 a barrel.
But the reasons for this, given the tight supply, are complicated.
This fall in the price of the crude oil is nearly six-months low
JPMorgan says a US recession looks increasingly less likely in the eyes of the stock market.
If this continues, prices of petroleum products on the local market will see the biggest reduction in the next pricing window on August 15th, 2022.
However, the rapid depreciation of the cedi may offset the significant reduction at the pumps.
Fuel prices in Ghana went down between 3% and 6% at the beginning of August 2022.
OPEC+ said it will raise its oil output target by 100,000 barrels per day.
“Crude oil fell further on demand concerns on a cloudy economic outlook,” CMC Markets analyst Tina Teng said.
“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.
Surveys showed on Monday, August 1st, 2022 that factories across the United States, Europe and Asia struggled for momentum in July 2022 as flagging global demand and China’s strict COVID-19 restrictions slowed production.