Oil Prices Fall 2 Percent After China Affirms

Oil Prices Fall 2 Percent After China Affirms

Oil Prices Fall 2 Percent:  Asian trade Monday, after Chinese officials reiterated their commitment to a zero-covid-19 policy. This means China will still tighten their mobility. As a result. Hopes that the demand for fuel will rise by importers of crude oil in the world have been dashed. Brent crude futures fell 1.6 percent to $96.99 per barrel. Meanwhile, the price of US West Texas Intermediate crude oil fell 1.9 percent to US $ 90.40 per barrel.

Oil Prices Fall 2 Percent After China Affirms

Oil prices fell sharply as Chinese officials pledged to stick to a zero-covid policy amid rising cases in China,” said CMC Markets analyst Tina Teng. The surge in the US dollar, he continued, also weighed on oil prices. The increase in the US dollar was due to the Fed’s tight monetary policy which raised interest rates.

In fact, at the end of last week’s trading, oil prices had skyrocketed to 5 percent, supported by the aggressive attitude of the US central bank. However, the embargo on Russian oil by the European Union is a factor reducing demand in the market. Brent and US WTI briefly touched price levels of US$98.57 per barrel and US$92.61 per barrel, respectively.

World crude oil prices fell two percent at the end of trading Thursday (Friday morning WIB).

The decline in oil prices was the result of the Fed’s tightening monetary policy, which raised the US dollar even more, while raising fears of a global recession that would disrupt fuel demand. traders became afraid that the Fed’s aggressive rate hikes would push the economy into an economic recession, hurting energy demand.

World crude oil prices fell two percent at the end of trading Thursday (Friday morning WIB). The decline in oil prices was the result of the Fed’s tightening monetary policy, which raised the US dollar even more, while raising fears of a global recession that would disrupt fuel demand. traders became afraid that the Fed’s aggressive rate hikes would push the economy into an economic recession, hurting energy demand.

“Oil is battling a weakening global economic outlook and a soaring US dollar. It doesn’t look like the bearish driver will subside anytime soon,” said Edward Moya, senior market analyst at data and analytics firm OANDA. The decline in oil prices was also limited by concerns over supply. The European Union (EU) embargo on Russian oil over its invasion of Ukraine will begin on December 5 and will be followed by a halt to imports of oil products in February.

Business News