Decrease in the price of oil in the world market

The price of oil in today’s transactions of the world market witnessed a decrease.

According to the Reuters news agency, the price of oil was falling while analysts are hoping for an interest rate cut by the Federal Reserve (Central Bank of America) in September. 

Accordingly, the price of Brent North Sea oil decreased by 37 cents to 85 dollars and 3 cents per barrel. US West Texas Intermediate (WTI) crude oil was traded at $82 and 21 cents per barrel with a decrease of 41 cents. 

The market is now waiting for an interest rate cut in America. Lower interest rates will mean lower borrowing costs and economic growth. 

However, since the inflation rate in the US is not yet fully under control, the Federal Reserve is not capable of drastically reducing interest rates in the short term. However, the gradual reduction of the interest rate can also have positive effects on the amount of demand in the market. 

Translator: Abulfazl Hashemi