Brent dropped below $89 per barrel for the first time since February

Oil prices accelerated their decline on Wednesday amid growing concerns among traders about the prospects for energy demand in the context of slowing global economic growth. The daily minimum value was fixed at $88.93 per barrel – the asset fell below the level of $89 for the first time since February 2022. 

The main pressure on the commodity market is exerted by the increase in interest rates in the United States and the strengthening of the dollar, as well as expectations of a slowdown in global economic growth. The negative was also added by statistical data from China, which showed that the country reduced oil imports in August by 9.4% compared to the same month of the previous year.

Analysts note that oil prices are currently lower than they were at the end of February, when the market experienced a round of volatility amid the conflict in Ukraine and the introduction of tough sanctions against Russia.

From the point of view of technical analysis, Brent has been trying to break through the support level of $84.99 per barrel in the last six weeks. A drop in the price below this level will open the way for movement to the next support level, which will be $76 per barrel.