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Brent oil, a benchmark on the international market, experienced its first decline in three years in 2018. Before falling, oil had recorded a sharp 28% year-over-year increase in October, during which Crude oil prices reached 53 dollars a barrel, a decline of 21% a year, under the influence of fears of a slowdown in the global economy. At the daily close, the barrel traded in London cost $ 86.29 and has since fallen 40% every three months.
Brent responded to fears of a slowdown in the global economy, which would reduce demand for commodities and increase inventories. Fears spread on the markets as the US and China showed signs of escalating trade wars, which could have a bigger impact on countries' growth.
Increased market volatility was reinforced by the Fed's decision. Raise interest rates in December without modulating the rhetoric of slowing down the pace, in case the economy shows signs of slowing down.
Early December, OPEC member countries (Association of Petroleum Exporting Countries) an agreement to reduce production of 1.2 million barrels per day against the United States
Donald Trump criticizes the reduction in production, which would have the potential to raise prices and generate inflationary pressures on the US economy. ] The last oil price crisis occurred in 2015, due to the excess of the global supply of this product. During this year, fuel dropped by 35% and in 2016, it was trading at less than $ 30 a barrel.
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