Meanwhile, US West Texas Intermediate crude for October delivery fell $1.28 to $84.45. The October contract was due to expire on Tuesday and the most active November contract fell $1.42 to $83.94.
Both Brent and WTI are on track for their worst quarterly declines in percentage terms since the start of the coronavirus pandemic. Brent reached about $139 a barrel in March, its highest since 2008.
The dollar steadied near two-decade highs against other currencies on Tuesday, making oil more expensive for holders of other currencies, amid a spate of central bank meetings around the world this week.
The US Federal Reserve is likely to raise interest rates by another 75 basis points on Wednesday to curb inflation. These expectations weigh on stock markets, which typically move in tandem with oil prices.
While other major economies tighten their monetary policy, China left its benchmark interest rates unchanged on Tuesday as the world’s second-largest oil consumer tries to balance reinforcing slow economic growth with a weakening of its currency, the yuan.
Meanwhile, the Bank of England will announce its decision on interest rates on Thursday.
On the other hand, the US Department of Energy will sell up to 10 million barrels of oil from the Strategic Petroleum Reserve for delivery in Novemberextending the calendar of a plan to sell 180 million barrels of reserves to control fuel prices.
A document from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, shows the group missed its production target by 3.583 million barrels per day (bpd) in August, down 3.5 % of world oil demand.
Meanwhile, the stagnation of the reactivation of the nuclear agreement with Iran also continues to prevent that country’s exports from fully returning to the market.
The Organization of Petroleum Exporting Countriestogether with Russia, showed that missed its target of producing 3.583 million barrels per day in August. This represents the 3.5% of world demand of oil. The stagnation of the nuclear agreement with Iran prevents its production from returning to the market.
The dollar remains this Tuesday near its maximum two decades against six other currencies. This makes oil more expensive for buyers holding other currencies. Most of the central banks will define their monetary policy this week in view of the persistence of inflation.
Last week, the International Energy Agencyrevealed that he projected a slowdown in energy demand due to the slowdown in global economic activity, while international financial organizations recommended maintaining the rate policy. Directors of the European Central Bank they had been worried about rates entering contractionary territory.
Fears of aggressive central bank tightening continue to fuel concerns about a “rapidly weakening global economy” and put pressure on crude prices, it said. Edward Moyaa senior market analyst at OANDA, according to Reuters.
It is estimated that the US crude oil stocks they rose last week by about two million barrels, according to a Reuters poll. Vehicle movements in the United States in July fell 3.3% from a year earlier, declining for the second month in a row.
The United States Department of Energy will sell up to 10 million barrels of oil from the Strategic Petroleum Reserve for delivery in November, extending the schedule of a planned sale of 180 million barrels from the reserve to moderate fuel prices.
Source: Ambito
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