Slight drop in oil prices, traders concerned about economic slowdown

(Patria) - Oil prices fell slightly last week as traders are concerned about the slowdown in economic growth, and thus the demand for "black gold", while tensions in the Middle East provide support for prices.

On the London market, the price of a barrel fell by 0.8 percent last week, to $90.45, while on the American market, a barrel fell by more than 1 percent, to $85.66.

In the middle of the week, oil prices reached their highest levels in six months, but then fell as new data showed that inflation in the US continues to move at elevated levels.

This, in fact, means that the US central bank will keep interest rates at elevated levels longer than expected, so a further slowdown in the growth of the world's largest economy is possible.

Since other major oil consumers are also not in the best economic 'form', it is difficult to expect a significant increase in demand.

However, at the end of the week, oil prices recovered some of their losses due to tensions in the Middle East, after Tehran announced a response to the recent Israeli attack on the Iranian consulate in the Syrian capital, Damascus, which killed several high-ranking military officials and diplomats, reports SEEbiz.