International oil prices plummeted by more than 6% due to rising economic fears

Concerned by the Federal Reserve’s pessimistic outlook on the US economy and unfavorable economic data from the United States and Europe, investors’ worries about the global economic recession have intensified. International oil prices have plummeted on the 22nd and New York oil prices have fallen by more than 6%.

On the same day, the crude oil market sold heavily and large amounts of capital flowed out. Although the Fed announced on the 21st that it sold short-term bonds and bought long-term bonds to lower the level of long-term interest rates and stimulated economic growth, it failed to effectively boost market sentiment. Instead, the Fed’s pessimistic judgment on the U.S. economy has weighed heavily on the market. The Fed said in a statement, “The U.S. economy is facing a huge risk” and “the recovery of the job market will be very slow”, which aggravates investors’ concerns about the U.S. economy’s recession. Well-known investor Soros even believes that U.S. economy is experiencing a recession. .

The United States Department of Labor released data that day, the United States last week, the number of initial jobless claims decreased by 9,000, but still maintained at a high of more than 420,000, unable to ease market concerns.

At the same time, the euro zone's purchasing managers' index fell below 50 for the first time in two years in September, indicating that the euro zone's manufacturing industry contracted, while the European purchasing power manager's index fell to the lowest in 26 months. Coupled with the fact that the debt crisis is overcast, the European economy is also facing a great risk of recession, and the global financial market has fallen.

In addition, the market's risk aversion has soared, pushing the US dollar higher and about 1.5% for a basket of currencies. A strong dollar also exacerbated the decline in oil prices.

At the close of the day, the price of light crude oil for delivery in November on the New York Mercantile Exchange slumped by 5.41 US dollars to settle at 80.51 US dollars per barrel, a decrease of 6.30%, which was the lowest closing price since August 9. In November, the price of Brent crude oil in the North Sea in London fell by 4.87 US dollars to settle at 105.49 US dollars per barrel, a decrease of 4.41%.