WTI oil plunged nearly 7%

Oil prices fell about 6% to a 4-week low on Friday on fears that major central banks' rate hikes could stagnate the global economy and reduce energy demand.

Also contributing to pressure on oil prices, the dollar this week rose to the highest level since December 2002, making oil more expensive for buyers using other currencies.

At the end of Friday's session, Brent oil contract backed $ 6.69 (equivalent to 5.6%) to $ 113.12 / barrel. WTI oil contract lost $ 8.03 (equivalent to 6.8%) to $ 109.56 / barrel.

That is the lowest Brent oil closing since May 20, 2022, and the lowest for WTI oil since May 12, 2022. This is also the strongest dropping session of Brent oil since the beginning of May and the worst session of WTI oil since the end of March 2022.

Last week, Brent oil fell for the first time in 5 weeks, WTI dropped for the first time in 8 weeks.

The US market will be suspended on Monday (June 20) due to the Juneteenth holiday (June 19).

Global central banks, which quickly loosened monetary policy during a pandemic to avoid a recession, are tightening their policies to keep inflation under control.

The US Federal Reserve (Fed) this week raised the US interest rate by 75 basis points, the strongest point in more than 20 years.

Futures on gasoline and diesel futures in the US also fell by 4% on fears that soaring gasoline prices would reduce demand.

US energy companies this week added four rigs as US President Joe Biden criticized producers to profit from high prices instead of producing more to boost output.

Meanwhile, Russia forecasts oil exports will increase in 2022 despite Western sanctions and European sanctions, Russia's Energy Minister said on Friday.

Market volatility has increased significantly since the Russia-Ukraine conflict took place on February 24, 2022.
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