Oil prices have fallen to their lowest point in twelve weeks, partly due to fears of a recession. For example, the price for North Sea crude oil fell below 100 dollars per barrel for the first time in almost three months. US oil has also fallen sharply in price.
At the end of Wednesday afternoon, traders paid just over USD 99 (EUR 97) for a barrel of Brent oil, an important measure of North Sea oil. A week ago it was about 10 dollars more and a month ago the price was even more than 120 dollars.
The price of US oil has also fallen in recent days. A barrel of WTI oil cost about $96 on Wednesday afternoon, while the price hovered around $110 a day earlier.
The reason for the falling prices is the fear of a recession. If those fears materialize, demand for oil will fall as consumers buy less and businesses become less active. As a result, companies need less oil, for example for the transport of goods. A recession can also cause job losses, resulting in less commuter traffic.
Oil prices have been falling for several weeks. This has recently ensured that very expensive petrol in the Netherlands has become slightly cheaper. The recommended retail price for a liter of petrol is 2.425 euros on Wednesday. That is 8 cents lower than the record price of 2,505 euros from a month earlier.
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