Over the past three days, oil prices have risen on fears that aggressive interest rate hikes in the US could lead to a slowdown in the global economy and lower demand for fuel.
After a three-day rally, oil prices fell on Monday, August 22 to $95.55 per barrel, Reuters reports.
For example, Brent crude futures for October delivery were down 1.2% at $95.55 a barrel. Futures for US West Texas Intermediate (WTI) crude for September delivery were down 1.2% at $89.65 a barrel.
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Both Brent and WTI rose on Friday for a third straight day, but fell about 1.5% for the week on dollar strength and demand concerns.
“Investors are concerned that a possible sharp increase in Fed rates will trigger an economic downturn and reduce demand for gasoline,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
The strength of the US dollar, which hit a five-week high, also put pressure on oil prices as it makes oil more expensive for buyers in other currencies.
Investors will monitor Fed Chairman Jerome Powell’s comments as he speaks at the central bank’s annual global conference in Jackson Hole, Wyoming, on Friday.
US central bankers “have a lot of time” before they have to decide how much to raise interest rates to approve at their September 20-21 policy meeting, Richmond Federal Reserve President Thomas Barkin said on Friday.
It is believed that the Fed has more room to raise rates than the central banks of other major economies, which are more fragile.
Meanwhile, the leaders of the US, UK, France and Germany discussed efforts to revive the 2015 Iran nuclear deal, the White House said on Sunday, though no further details were provided.
The European Union and the United States said last week they were monitoring Iran’s reaction to what the EU called its “final” proposal to reopen a deal under which Tehran curbed its nuclear program in exchange for sanctions relief. – economy.
It will be remembered that last week the price of oil dropped below $92. The sharp drop in oil prices began on Monday and continued through the middle of the week.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.