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Business News of Friday, 5 August 2022

Source: www.ghanaweb.com

Price of crude oil falls to almost $90 per barrel

Crude oil Crude oil

A barrel of crude oil is currently selling at nearly $90 after the commodity increased to about $130 in March 2022 due to the invasion of Ukraine by Russia.

This is the lowest the commodity has seen in the past six months. However the reasons given for the fall in the price are complicated according to JoyBusiness reports.

Meanwhile, prices of petroleum products on the local market will see the biggest reduction in the next pricing window on August 15, 2022, if the reduction in crude prices persists.

But in Ghana’s case, the cedi’s depreciation may not allow a significant reduction at the pumps.

At the beginning of August, fuel prices in Ghana saw a reduction of 3% and 6%.

OPEC+ has stated that the oil output target will be increased by 100,000 barrels per day.

CMC Markets analyst Tina Teng said, “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.

SSD/FNOQ

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