I retreated Oil prices for the third consecutive session, Today, Wednesday, as the dollar strengthened and investors prepared to receive US inflation data, amid concerns regarding fuel demand raised by the risks of a global recession and the tightening of “Covid-19” restrictions in China.
By 0410 GMT, Brent crude futures fell 46 cents, or 0.5%, to $93.83 a barrel.
The price of US West Texas Intermediate crude futures fell 54 cents, or 0.6%, to $88.81 a barrel.
Both benchmarks fell by 2% in the previous session, according to “Archyde.com”.
The dollar rose to a 24-year high once morest the yen on Wednesday, on inflation concerns. A strong dollar makes dollar-denominated commodities more expensive for holders of other currencies, and tends to affect oil and other riskier assets.
“Despite the fundamentals of higher oil prices and a massive cut in (OPEC) production, any collapse in high-risk assets might continue to hurt oil prices,” said Stephen Innes, of SBI Asset Management.
The US consumer price report is scheduled for Thursday.
On Tuesday, the International Monetary Fund cut its global growth forecast for 2023, warning of the increased risks of a recession.
But the International Monetary Fund has also urged central banks to continue their fight once morest inflation, even as investors worry that monetary policymakers might cause a severe economic contraction by raising borrowing costs.
The oil market is also under pressure from the tightening of “Covid-19” restrictions in China, the second largest oil consumer in the world.
Major Chinese cities, including Shanghai and Shenzhen, have ramped up testing for “Covid-19” and tightened restrictions following infections rose to their highest levels since August.
On the supply side, a preliminary poll conducted by “Archyde.com” on Tuesday showed that US crude oil stocks rose by regarding 1.8 million barrels in the week ending on October 7, following they fell in the past two weeks.
Inventories data was delayed by one day this week due to Monday’s holiday.
