Where are oil prices headed?

Business
Where are oil prices headed?
Crude oil

US crude oil has also followed a similar path down close over 16 percent from their September peak of $93 per barrel currently trading at $76.

KAMPALA | Brent Oil (UK) has been on the downward trajectory from about $93 a barrel to around $81 a barrel as of Frankfurt session trading.

US crude oil has also followed a similar path down close over 16 percent from their September peak of $93 per barrel currently trading at $76.

The decline is seen as recession fears stock the UK with 2 registered quarterly GDP declines indicating dampened demand in the energy sector.

The US Strategic Petroleum reserve stock currently stands at $358m, higher by over 9m from September 2023 indicating a huge increase in stockpiles dampening higher oil prices.

OPEC has had a tough stance on oil output requiring members to reduce the output and this has not materialized in the price.

Russia, one of the world's biggest oil exporters also ramped up exports after towards the end of 2023 producing as much as 300,000 per barrel per day further providing downside pressure on prices.

The price of oil is typically used as a forward indicator to any recession as was seen in the recent 2020 Covid-19 recession where oil prices in the futures market dipped to negative territory.

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