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WTI oil drops below 90 dollars per barrel

New York, Aug 31 (Prensa Latina) American benchmark West Texas Intermediate (WTI) crude on Wednesday traded at .55 per barrel, for a .09 or 2.3% gain, according to oil traders.

Specialists noted the stiff fall in oil price was, despite weekly decline in US crude oil reserves, 3.3 million barrels, a larger volume than previously estimated by experts.

Oil market sources said this is the second-consecutive oil price slowdown, added to Tuesday’s 5.5% downfall.

However, the WTI oil barrel – the U.S. benchmark crude oil – started off the week with a 4.2% rebound, driven by possible cuts in the Organization of the Petroleum Exporting Countries and its allies (OPEC+) and also due to political tensions in Libya and Iraq.

Tuesday´s stiff oil price pullback, however, wiped out all Monday’s gains, as concerns over domestic inflation and possible recession threatened to reduce oil demands, experts said.

In this regard, SEB’s Chief Commodities Analyst Bjarne Schieldrop considered financial market, which is presently selling due to fears of possible recession, is the follow-on of general oil price context.

Craig Erlam, specialist at Oanda Company, stated present oil price decline accounts for small indication of other oil markets and of the lack of certainty.

Meanwhile, the Brent oil price, the European benchmark, lost $2.82 (or 2.84%) on Wednesday, trading crude at $96.50 per barrel.