“Oil faces a weaker economic environment and a stronger dollar,” Oanda’s Edward Moya said in a note.
both referential had earned more than $1 on Wednesdayhelped due to another drop in oil inventories in the United Stateseven though the Federal Reserve of the United States will increase interest rates by 75 basis points and the president Jerome Powell he said it was premature to consider a pause in rate hikes.
That sent the dollar higher on Thursdayas Powell indicated that it is likely Interest rates in United States peak above current expectations of investors.
A strong dollar reduces demand for oil by making it more expensive. for buyers using other currencies. Nevertheless, losses were capped by expectations that the oil market will tighten in coming months.
The embargo of the European Union about him russian oil for his invasion of Ukraine will start on December 5 and will be followed by a cessation of imports of oil products in February.
The decrease in the production of the Organization of the Petroleum Exporting Countries (OPEC) also helped support prices, since, according to a Reuters study, the The group’s production fell in October for the first time since June.
The OPEC pumped 29.71 million barrels per day (bpd) last monthaccording to the survey, which represents a decrease of 20,000 bpd compared to Septemberthat was the largest production since April 2020. The group produced 1.36 million bpd below targets for October.
The OPEC decision had crossed into the United States with the group since the president of that country, Joe Biden, had accused Saudi Arabia to support the decision to favor Russia and prevent the fall in the price of one of its main exports. From the block of producers they maintain that the decision is fundamentally based on an economic response to a drop in price.
The crude oil prices soared since the irruption of war in ukrainewhich added pressure to global inflationary processes, in addition to fueling fears of the shortagefacing the European winter.
Source: Ambito
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