Oil prices down on inflation concerns, stable Iraq’s exports

Oil prices fell today, Tuesday, due to fears that the weakness of global economies caused by inflation will lead to a decline in demand for fuel, in addition to the fact that Iraqi exports will not be affected by the ongoing clashes there.

Brent crude futures for October delivery fell $2.45, or 2.33%, to $102.64 a barrel by 1022 GMT, after rising 4.1 percent on Monday, the biggest increase in more than a month, Reuters reported.

The October contract expires on Wednesday, and the November contract for delivery has become the most active in trading at $101.12 a barrel, down 1.76 percent.

US West Texas Intermediate crude was traded at $95.46 a barrel, down $1.55, or 1.6 percent, after a 4.2 percent increase in the previous session.

Inflation is close to double digits in many of the world’s major economies, a level not seen in nearly half a century, which could prompt central banks in the United States and Europe to resort to sharper increases in interest rates, which could reduce the rate of inflation. Economic growth and affect the demand for fuel

Baghdad is witnessing the worst fighting in its streets in years, after security forces and factions loyal to Shiite cleric Muqtada al-Sadr clashed in the Green Zone, which includes government headquarters and embassies.

SOMO also said on Tuesday that it could redirect more oil to Europe if needed

OPEC +, which includes OPEC members and allied producers led by Russia, will hold a meeting on the fifth of September to determine production policy.

Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries, last week raised the prospect of production cuts that sources said could coincide with an increase in supply from Iran if it reached a nuclear deal with the West.