Oil in the red on concerns about demand

World oil prices are declining on Thursday, reaching $84.12 per barrel. The reason for the weakening was investors' concern about the prospects for oil demand. In addition, market participants continue to follow the news concerning the introduction of a ceiling on prices for Russian oil.

Brent oil quotes have been holding within the narrow sideways range of $84-86 per barrel since yesterday. The current quote of the asset is $84.47 per barrel. North American WTI crude is trading at $77.36 per barrel. 

The main pressure on prices is caused by concerns about the prospects for demand. The fact is that the world's central banks adhere to a policy of raising rates against the background of high inflation, and such a situation can lead to a recession, which will affect oil demand. 

In addition, the introduction of a ceiling on oil prices from the Russian Federation will also have an impact on demand, especially in the context of the ongoing energy crisis in Europe. As you know, the United States and its allied EU countries are trying to agree on a ceiling of prices for Russian oil no higher than $ 70 per barrel. However, so far the negotiations have not yielded results, since not all countries have a common position on this issue.

Yesterday it became known that the European Commission supports the level of $ 65 per barrel, but Poland and the Baltic states considered it too high. In turn, countries with a powerful shipping industry, such as Greece and Malta, do not want prices below $70.