Brent Crude drops to $82/Bbl

Brent crude futures dropped towards $82 per barrel on Friday, as oil prices came under pressure amid an inflation-driven dollar rally, downgraded demand forecast from OPEC and the threat of further US intervention in the oil markets.

OPEC said in its monthly report that it expects oil demand to average 99.49 million barrels per day in the fourth quarter of 2021, lower by 330,000 million barrels from last month’s forecast, as higher energy prices dampen the return of demand. The same report also cited higher energy costs as a factor in the slowdown of the global recovery and lower demand from China and India, with spillover effects through wider sectors of the economy as shown in latest inflation figures.

Meanwhile, markets are also gearing up for further US response in curbing high oil prices, including a release of more emergency oil reserves

Brent Crude oil is a major benchmark price for purchases of oil worldwide. While Brent Crude oil is sourced from the North Sea the oil production coming from Europe, Africa and the Middle East flowing West tends to be priced relative to this oil.

Source: Trading Economics