Brent crude traded at less than $ 100 a barrel on Tuesday as it fell $ 7.61 or 7.1% to $ 99.49 per barrel amid growing concerns about a global economic slowdown.
Also, due to the strong US dollar and the suppression of COVID-19 in China, the price of West Texas Intermediate (WTI) crude oil fell by $ 8.25 (7.9%) yesterday to $ 95.84 per barrel.
The price of Brent crude oil futures yesterday was the lowest since April 11, but the US crude oil benchmark was also the lowest in three months.
The record high dollar is causing the liquidation of oil sales, which are generally priced in the US dollar.
Due to the stronger greenback, this makes the commodity more expensive for holders of other currencies.
The dollar index, which tracks currencies against baskets of six counterparts (euro, Swiss franc, Japanese yen, Canadian dollar, British pound and Swedish krona) on Tuesday, rose to 108.56, the highest level since October 2002. Did.
Investors tend to see the dollar as a safe haven during market volatility and therefore cannot trade at profitable levels.
It was also the curb of the updated COVID-19 trip in China that was influencing demand forecasts that weighed on prices. This is because several Chinese cities have adopted new restrictions, from business outages to broader blockades, to curb new infections from highly infectious subvariants of the virus. Is happening to
The world’s largest oil importer, where the virus first occurred, discovered a new infection from the highly infectious BA.5.2.1 subvariant of the virus.
Meanwhile, US President Joe Biden will insist on increased oil production from the Organization of Petroleum Exporting Countries (OPEC) when meeting with leaders of Saudi Arabia’s Gulf countries this week.
There is not enough spare capacity in the cartel and most producers are pumping at maximum capacity.
Industry experts say that OPEC’s largest producer, Saudi Arabia, currently has a daily production of at least 10.5 million barrels and an additional 1.5 million barrels per day, making it online quickly and sustainably. I’m asking if I can.
Fatih Birol, Managing Director of the International Energy Agency (IEA), said refined products should be included in Russia’s oil price caps.
“My hope is that some countries will agree on important suggestions for minimizing the impact on the world’s economy,” said Virol, a bystander at the Sydney Energy Forum in Australia. Told to.
Western sanctions on Russia over the war in Ukraine have disrupted the flow of oil and fuel trade.