The price of a barrel of oil sinks due to fears of recession

The price of a barrel of oil collapsed this Tuesday around 9 percent and fell to the lowest since last May around 100 dollars as a result of fears that the impact of inflation on demand could lead to a recession.

In the case of Brent oil, a benchmark for Europe, the price of a barrel fell this Tuesday up to 102 dollars, at lows since last May 11, with a reduction of 8.6 percent since the close of yesterday’s session.

On his side, the barrel of West Texas Intermediate (WTI) crude oil fell to 98.32 dollars from 108.43 dollars at the close on Monday, a drop of 9.3 percent, to lows since last 11 of May.

The composite PMI for the euro zone, one of the main leading indicators of activity, fell in June to a 16-month low as a result of the impact of price increases and the deterioration of economic expectations, fueling fears that the “decline” of the bloc’s economy leads to a recession.

The fear of a contraction of the euro economy may thus weigh on the ECB’s spirit when undertaking normalization more aggressive monetary policyafter announcing a rate hike of 25 basis points in July, the first since 2011, and yet another in September, the intensity of which will depend on inflation forecasts

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