New drop in oil prices with investors once again weighing the risks of a rapid weakening of growth with persistent inflation that could induce the Fed and the ECB to remain aggressive in raising interest rates.
Brent crude oil futures fell 3.95% to $ 98.89 a barrel, while West Texas Intermediate (WTI) fell -4.16% to $ 92.97 a barrel.
The drop in prices sharpened after the chief executive of the Iraqi state-owned oil marketing company known as SOMO said the country’s oil exports were unaffected by the unrest. SOMO also said it can redirect more oil to Europe if needed.
Meanwhile, expectations are high for the next OPEC + meeting on 5 September. Saudi Arabia last week raised the possibility of production cuts by OPEC +, which sources say could coincide with an increase in supply from Iran should it strike a nuclear deal with the West.