Oil prices fall below $82

(Patria) - Oil prices fell below $82 on international markets yesterday, as traders' fears prevailed that a cut in US interest rates only at the beginning of autumn could push the world's largest economy into recession and curb demand for energy.

On the London market, the price of a barrel was 68 cents lower than at the market close at the end of last week, standing at $81.95.

The barrel price fell by almost the same amount on the US market, where it traded at $79.44.

Traders have been trying for weeks to assess when the US central bank might lower key interest rates.

The Fed's monetary policy committee will meet at the end of July and will likely keep interest rates at the current level, analysts speculate.

Consumer prices fell in June on a monthly basis for the first time since the start of the pandemic, demand for labor is easing, and markets fear that high borrowing costs are taking a toll on economic activity.

- Delaying interest rate cuts carries the risk of reduced economic activity, which could result in a recession.

That scenario includes negative consequences for oil demand and its prices - notes Razan Hilal from Forex.com in a note.

The withdrawal of US President Joe Biden from the candidacy for a new term did not have a significant impact on oil markets, traders conclude.