Oil prices declined on concerns about global demand

Oil prices began to decline on Tuesday due to concerns about global demand.

August futures for Brent crude oil fell by $1.28 (1.73%) and reached $72.9 per barrel. WTI futures quotes for August decreased by $1.24 (1.79%) and amounted to $67.64 per barrel.

Investors are concerned that the active increase in interest rates by leading central banks worldwide could lead to a global recession and a decline in fuel demand. These concerns were intensified after a statement by the head of the European Central Bank, Christine Lagarde, who noted that the ECB is unlikely to be able to complete its cycle of tightening monetary policy in the near future.

«It is unlikely that in the near future we will be able to state with full confidence that interest rates have reached their peak,» Lagarde said during a forum in Sintra.

Market participants are also monitoring macroeconomic data from China, where the economy is growing slower than expected. According to analysts, this has a negative impact on energy prices.

For example, prices for North American WTI crude oil may end the second consecutive quarter with a decline, which has not happened since 2019, due to the Chinese factor and the strict monetary policy of the Federal Reserve System.