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May 22, 2022

Brent falls below USD 120/barrel as sell-off continues

Crude futures tumbled Tuesday, with Brent falling below USD 120.00 per barrel for the first time since the beginning of April, as ABC News informs. Oil extended Monday’s fall, as the market continued to digest news that ratings agency Standard & Poor’s had downgraded its view of U.S. government debt, playing into fears over the state of the global economy and the impact that high oil prices could have on its fragile recovery. At 09.04 GMT, the front-month June Brent contract on London’s ICE futures exchange was USD 1.33, or 1.1 pc, lower at USD 120.28 a barrel.

The front-month May contract on the New York Mercantile Exchange was trading down 99 cents, or 0.9 pc, at USD 106.13 per barrel. The ICE’s gasoil contract for May delivery was down USD 6.25, or 0.6 pc, at USD 998.50 per metric ton, while Nymex gasoline for May delivery was 400 points, or 1.2 pc, lower at USD 3.2128 per gallon. OPEC Secretary General Abdullah al-Badri, speaking at an oil and gas trade fair in Tehran, said he did not expect oil to fall below USD 100 this year, even though there was no shortage in the market. He reiterated for Xinhua news press agency that OPEC’s call on consumer nations to revise their tax systems to address what he called “exceptional circumstances,” so as to lessen the burden of high prices. But the high oil prices were starting to weigh on economic growth and hit demand.

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