Oil prices extend loss | The star of the day

Oil prices extended their losses on Tuesday, but gas prices in Europe hit nearly six-month highs, fueling recession fears in both cases.

Major stock markets rose mostly on bets that the Federal Reserve would not raise borrowing costs by 75 basis points for a third straight time next month after decades-high inflation eased in the states. -United.

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However, “a wave of concern is growing over the darkening global growth outlook as economies slow around the world, pushing down oil prices in expectation of falling demand,” noted Susannah Streeter, Hargreaves Lansdown Senior Investment and Market Analyst.

Both major crude contracts fell, having lost around 3% on Monday, as demand expectations ease in light of a series of weak economic indicators in major economies, including China.

Signs that Iran is moving towards a nuclear deal have added downward pressure on prices, with a deal seen as allowing the country to revive oil sales on the world market.

Analysts said Tehran could deliver 2.5 million barrels a day, giving a much-needed boost to supplies, which have been hammered by sanctions on Russia in response to its invasion of Ukraine.

Libya also boosted production, helping prices fall to their lowest level in six months and wiping out gains seen after the start of the war in Ukraine.

But analysts have warned there may still be some way to go on a deal with Iran, due to the upcoming US election.

“A deal with Iran would likely not be popular with American voters and is therefore difficult to contemplate before the midterm elections in November,” said Ray Attrill of National Australia Bank.

“Markets are currently tilted for optimism, however, and hopes for a deal…have added downward pressure on oil prices.” The European Union was studying Iran’s response on Tuesday to a draft “final” deal on reviving a 2015 nuclear deal with major powers that it presented during talks in Vienna.

The United States said on Monday it was briefing EU foreign policy chief Josep Borrell on its response to the text he submitted on Aug. 8.

In Europe on Tuesday, the benchmark price for Dutch natural gas TTF rose 4.7% to 230.50 euros per megawatt hour – the highest points since early March, or shortly after the invasion of Ukraine by Russia.

Russian President Vladimir Putin on Tuesday accused Washington of prolonging the war, as explosions rocked a Russian military installation in the Kremlin-controlled Crimean peninsula.

Washington is “using the Ukrainian people as cannon fodder”, he said, lambasting the United States for supplying weapons to Kyiv.

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