Price of crude oil reduces to below $90

The price of crude oil has fallen below $90 dollars to sell at $89.17 as at September 19, 2022.

Brent crude sold at $89.17 on September 19, 2022, whilst WTI crude mostly used in the USA went for $84.20.

This is however the second time this year the commodity has fallen to below $90 since the global recession began this year.

According to myjoyonline reports, an analyst at Price Futures Group, Phil Flynn, stated that the oil market’s biggest concern is centered on happenings in Europe.

“Right now, the market is basing its concerns about what will happen due to sharply higher energy prices in Europe, slowing demand in Europe, and interest rates rising,” she said.

However, Ghana may not benefit from the reduction in global fuel prices due to the depreciation.

According to him, Ghana will continue to gain little or nothing from the reduction in fuel prices until the cedi begins to appreciate.

“Prices on the global market have gone down, but our consumers may not benefit from that because our local currency, the cedi, which is the key variable in the determination of local market prices keeps depreciating against the imparting currency being the dollar,” he is quoted by citinewsroom.com.

“If the cedi continues on this tangent, then the Ghanaian consumers may not benefit from any price reduction on the international market. If we are not fortunate, and we keep seeing increases in prices we will see our prices go up. We may start selling a litre for 17 cedis,” Nana Amoasi III stressed.