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Oil Closed Year at 21 Percent on Tears of Global Slowdown

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The barrel closed the year quoted at US $ 53

The Brent crude oil, reference in the international market in 2018 was the first drop in three years. The barrel closed the year quoted at US $ 53, a 21% reduction, reflecting fears of a slowdown in the global economy.

Brent reacted to fears that the global economy will slow, which would cut demand for raw materials, boosting inventories. Fear spread to markets as the United States and China showed signs of an escalating trade war, which could have a greater impact on the growth of countries.

Markets gained additional volatility as the Fed’s decision to raise interest rates in December without modulating the pace of a bullish rebound if the economy did show signs of slowing.

In early December, OPEC member countries reached an agreement to cut output by 1.2 million barrels a day, a challenge to the United States.

Donald Trump criticizes the cut in production, which would have the potential to raise prices and generate inflationary pressure in the US economy.

The last crisis of oil prices had occurred in 2015, due to the excess of global supply of the product. That year, fuel fell 35 percent and in 2016 it traded below $ 30 a barrel.

The barrel closed the year quoted at US $ 53

The Brent crude oil, reference in the international market in 2018 was the first drop in three years. The barrel closed the year quoted at US $ 53, a 21% reduction, reflecting fears of a slowdown in the global economy.

Brent reacted to fears that the global economy will slow, which would cut demand for raw materials, boosting inventories. Fear spread to markets as the United States and China showed signs of an escalating trade war, which could have a greater impact on the growth of countries.

Markets gained additional volatility as the Fed’s decision to raise interest rates in December without modulating the pace of a bullish rebound if the economy did show signs of slowing.

In early December, OPEC member countries reached an agreement to cut output by 1.2 million barrels a day, a challenge to the United States.

Donald Trump criticizes the cut in production, which would have the potential to raise prices and generate inflationary pressure in the US economy.

The last crisis of oil prices had occurred in 2015, due to the excess of global supply of the product. That year, fuel fell 35 percent and in 2016 it traded below $ 30 a barrel.