Oil falls on risks around demand

Global oil prices fell by more than 1% on September 7 morning, as investors express concern over the prospects for demand for this type of raw materials due to a number of factors.

The price of November futures for Brent crude fell by 1.49% to $91.45 per barrel, October futures for WTI - by 1.78% to $85.33.

News of China’s coronavirus tightening has returned the downtrend in demand forecasts, while new challenges for oil prices come from a stronger US dollar.

Oil prices approached their lowest levels since the beginning of the year, as investors fear for the demand outlook due to a number of factors, including a possible recession. Global central banks are prone to raising key rates amid high inflation, while China continues to adhere to a policy of zero tolerance for the coronavirus.

The strengthening of the dollar also restrains oil prices. The dollar index (the exchange rate against a basket of currencies of six countries - US trading partners) rose by 0.27%, to 110.52 points. The appreciation of the US currency makes commodities, including oil, less accessible when buying in another currency.

Investors also noticed that Saudi Aramco lowered the October selling prices for oil for Asia. At the same time, OPEC+ at a meeting on September 5 decided to again cut oil production by 100,000 barrels per day, returning in October to the August terms of the agreement.

www.anews.az