Concerns about China’s economy and the rise of the dollar continue to weigh on the oil market.
World oil prices edged lower at the start of the new work week on worsening demand prospects. This was confirmed by the trading results on Monday, November 12.
Thus, January futures for Brent oil fell in price on the London ICE Futures exchange by $1.01 (1.37%) to $72.86 per barrel.
Meanwhile, December WTI crude futures in electronic trading on the New York Mercantile Exchange (NYMEX) were down $1.11 (1.58%) at $69.27 a barrel.
Western agencies wrote that market pressure continues to raise concerns about the economy of China, the world’s largest oil importer. Data published over the weekend indicated a further slowdown in inflation and a drop in producer prices in China in October, while the authorities have yet to announce new measures to stimulate consumption.
Another negative factor for the oil market is the strengthening of the US dollar, which reduces the investment attractiveness of black gold for owners of other currencies.
“The rebound in the dollar rally has fueled negative sentiment in commodity markets,” said Saxo Bank’s Ole Hansen “Market confidence in Chinese initiatives that could support prices has also weakened.”
According to the oil service company Baker Hughes, in the past week the number of oil drilling rigs operating in the United States did not change and reached 479 units. The number of gas installations remained at 102 units.
In addition, the US Department of Energy announced the purchase of the last 2.4 million barrels of oil in the country’s strategic reserve. In 2022, the authorities sold 180 million barrels from the strategic reserve to mitigate the impact of a sharp increase in fuel prices. Since that time, the US Department of Energy has replenished the reserve by about 200 million barrels, and at a profit for the budget. The reserve replenishment program is complete.
Let’s remember that last week the price of oil, gold and other commodities fell due to the victory of Donald Trump in the US presidential election. The exchange rate of the US dollar also began to rise.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.