Oil has risen in price after the collapse last week

On Monday, the price of oil began to rise after a record drop in more than eight months at the end of last week ($75.26 per barrel).

The current Brent quote is $77.33 per barrel, North American WTI oil is trading near $72.50 per barrel after falling to $70.25.

At the end of last week, Brent fell in price by 11.1%, WTI – by 11.2%. Both contracts ended trading at lows since December 2021. The main negative factor for oil prices last week was concerns about a recession in the global economy and fuel demand in China.

Investors are afraid that against the background of data on maintaining a high level of business activity in the United States and fairly high inflation, the Federal Reserve will continue to adhere to a tight monetary policy and will not rush to lower rates. This, in turn, could slow down economic growth in the United States and in the world as a whole, as well as lead to a global recession and lower fuel demand. 

In addition, traders reacted to the introduction of a ceiling on Russian oil prices and news about the easing of coronavirus restrictions in China. 

Meanwhile, the number of operating oil drilling rigs in the United States last week decreased by 2 units and amounted to 625. Analysts note that the indicator decreased for the first time in six weeks.