Oil price dips as dollar strengthens, demand weakens By Reuters
Commodities 9 minutes ago (Sep 29, 2022 12:05AM ET)
(C) Reuters. FILE PHOTO: Pump jacks operate at sunset in Midland, Texas, U.S., February 11, 2019. Picture taken February 11, 2019. REUTERS/Nick Oxford/File Photo
By Muyu Xu and Laura Sanicola
(Reuters) -Oil prices retreated slightly on Thursday after gaining more than $3 in the prior session, with a strong dollar capping oil demand from buyers using other currencies and concerns over the faltering economic outlook clouding market sentiment.
Both benchmarks had rebounded in the prior two sessions after reaching nine-month lows this week after a temporary dive in the dollar index and a larger-than-expected drawdown of U.S. fuel inventory raised hopes of a consumer demand recovery.
However, the dollar index trended upward again on Thursday, dampening investor risk appetite and stoking fears of a global recession.
The Bank of England said it is committed to buying as many long-dated government bonds, know as gilts, as needed between Wednesday and Oct. 14 to stabilise its currency after the British government’s budgetary plans announced last week caused the sterling to tumble.
Goldman Sachs (NYSE:GS) cut its 2023 oil price forecast on Tuesday, citing expectations of weaker demand and a stronger U.S. dollar, but said global supply disappointments reinforced its long-term bullish outlook.
In China, the world’s biggest crude oil importer, travel during the week-long national holiday is set to hit the lowest level in years as Beijing’s persistent zero-COVID rules prompt people to stay at home and economic woes dampen spending.
Citi economists have lowered their China GDP forecast from 5% year-on-year growth to 4.6% for the fourth quarter of 2022.
“Stringent zero-COVID measures and a weak property sector continue to cloud growth prospects,” Citi analysts wrote in a note on Wednesday.
On the other side of the world, the European Union proposed a new round of sanctions against Russia over its invasion of Ukraine, including tighter trade restrictions, more individual blacklistings and an oil price cap for third countries.
But the bloc’s 27 member countries will need to overcome their own differences to implement them.
Oil price dips as dollar strengthens, demand weakens
By Paul Carrel and Stine Jacobsen BERLIN/COPENHAGEN (Reuters) – The European Union on Wednesday promised a “robust” response to any intentional disruption of its energy…
By Jonathan Landay ZAPORIZHZHIA, Ukraine (Reuters) – Russia was poised to annex a swath of Ukraine within days, releasing what it called vote tallies showing overwhelming support…
By Ambar Warrick
Investing.com– Oil prices rose further on Thursday after expectations of declining U.S. supply sparked a two-day rally, with focus now turning to upcoming…
(C) 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.