Oil prices fell today, Tuesday, to continue its losses, which amounted to around 2% in the previous session, as the rise in the dollar and the rise in coronavirus infections in China led to fears of a slowdown in global demand and gold prices fell slightly, influenced by gains in the US currency, amid expectations of continuing to raise interest rates.
At 09:30 UTC, Brent crude futures fell 2.2% to $ 94.1 a barrel, after falling $ 1.73 in the previous session.
The price of US West Texas Intermediate crude reached around $ 89 a barrel, down 2.4 percent, after falling $ 1.51 in the previous session.
Cases of COVID-19 in China, the second largest consumer of oil in the world, have risen to their highest levels since last August.
To limit losses, the Organization of the Petroleum Exporting Countries (OPEC) and the “OPEC Plus” bloc, which includes Russia-led OPEC allies, decided last week to reduce target production by two million barrels per day. increasing fears of reduced oil availability.
EU sanctions on Russian crude oil and petroleum products will come into effect next December and February, at a time last week when the blockade gave its final approval to a new round of sanctions against Moscow, including fixing a ceiling on Russian oil export prices.
Rise of the dollar
The dollar rose Tuesday for the fourth consecutive session, with concerns about high interest rates and geopolitical tensions worrying investors, and a strong dollar reduces demand for oil because it makes it more expensive for buyers using other currencies. .
The dollar index rose 0.3% to 113.14 points, surpassing its lowest level near 110 points last week and returning to its 20-year high, which reached 114 last month. 78 points.
Meanwhile, the British pound fell for a fourth consecutive session even after the Bank of England extended its support to the markets.
On Thursday, US data is expected to show that the overall inflation rate hit 8.1% yoy last September, but fell from 8.3% the previous August.
Core inflation is also expected to rise to 6.5% from 6.3% previously.
gold dip
On the other hand, gold prices also fell slightly today, Tuesday, impacted by dollar gains, amid expectations of continuing to raise interest rates, while caution prevailed ahead of the announcement of important data on the dollar. inflation coming at the weekend.
Spot gold prices fell 0.1% to $ 1,665.89 an ounce by 06:12 UTC, after hitting their lowest level since October 3, and US gold futures fell 0. 1% at $ 1,672.60.
10-year US Treasury yields rose modestly to 4%, while the dollar index rose 0.3%, making gold more expensive for buyers holding other currencies.
Although gold is considered a hedge against inflation and economic uncertainty, higher interest rates reduce the attractiveness of the non-productive metal.
As for other precious metals, spot silver prices fell 1.3% to $ 19.39 an ounce, platinum fell 0.3% to $ 896.08, while palladium was down. climbed 0.3% to $ 2,178.26.
The prices of palladium, which is used in car emission control devices, as well as platinum, have increased by about 15% this year.
