In the early hours of the session, both contracts lost more than 1 dollar, while Brent rose more than 1 dollar in Asian operations.
The Crude futures posted their biggest daily plunge in two weeks on Mondayafter data from the services sector in the United States that showed the strength of the country’s economy.
The data reinforced the belief among investors that the Federal Reserve could keep longer aggressive interest rate hikeswhich lent support to the dollar index in the session.
A stronger greenback makes oil denominated in the US currency more expensive for buyers of other currencies, which reduces demand for raw material.
“Inflation headwinds could continue to cause global economic turbulence in the coming months,” he said. tamas vargafrom the PVM brokerage in dialogue with Reuters, but added that “the gradual opening due to COVID in China is a timidly positive development“.
In Chinamore cities are easing restrictions related to COVID-19which gives rise to hope that increase demand in the world’s leading oil importer. The country is about to announce a new easing of some of the world’s strictest restrictions from Wednesday, according to sources consulted.
Source: Ambito
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