Crude Oil fell 3.68% to below $90 a barrel, and is now at $86.17 a barrel. Brent oil contracts also fell by 3.17% to record $92.09 per barrel.
This fall is driven by fears that the Chinese economy will fall into the trap of recession and the global economic slowdown.
Prices also fell as a result of the announcement by the Chairman of the Aramco Board of Directors (TADAWUL:2222) that the company is ready to raise its production to the maximum level of 12 million barrels per day, if the Saudi government requests it.
Prices were also affected by news of the approaching resolution of the Iranian crisis and its return to the oil market, which in turn may provide new production that will increase supply and cause a greater drop in prices.
Oil ended trading in this session at its lowest level since January 25, before the Russia war.
US markets started trading on Tuesday with clear contrast, after it succeeded in recovering from the decline recorded in trading on Monday, after Chinese economic data raised fears, amid anticipation of the US Federal Reserve minutes.
The shaking came at the beginning of today’s trading, with the markets affected by the results of Wal-Mart Stores (NYSE:WMT), which, although it exceeded expectations, the company insisted on its previous expectations regarding reducing its final revenue forecast for 2022 in light of high inflation rates.
The retailer’s results beat analysts’ expectations but the company repeated an earnings warning last month, when Walmart said inflationary shoppers were buying less-than-normal items such as clothing because they spent more on essentials.
Urgent: US retail giant surprises markets
Wall Street now
The Dow Jones Industrial Average rose during these moments of trading today, Tuesday, in the range of 0.3%, or the equivalent of 70 points, to reach levels near 34,000 points.
In contrast, the Nasdaq technology stock index fell by 0.8%, or 105 points, down to 13020 points, and the broader S&P 500 index fell by 0.25%, or 10 points.
Although gold is still declining until these moments of trading today, Tuesday, the yellow metal succeeded in paring some of its morning losses, falling within the range of 6 dollars, compared to a loss of 10 dollars earlier in today’s trading.
However, gold is still going through violent fluctuations between levels below 1785 dollars an ounce and 1798 dollars an ounce, coinciding with the fluctuations experienced by the dollar index on the opposite side.
During these moments, the strong rise of the dollar index in early trading near the levels of 107 points turned into a slight decline of 0.05%, down to levels near the 106.5 points.
The fluctuation of the dollar index coincided with the return of US treasury bonds to the rise, as the yield on 10-year treasury bonds rose to 2.87%, an increase of 0.016 points, after falling in early trading to 2.77%.