International oil prices fell, conditional on the dollar’s rebound, and positive signs also emerged on the supply side
International oil prices fell on Thursday (Dec. 15) as the dollar index strengthened, commodities became more expensive for holders of other currencies, and the possibility of further interest rate hikes by the Federal Reserve exacerbated demand concerns. The partial resumption of operations of the Keystone Pipeline also put commercial pressure on the market.
As of 4:54 pm Beijing time, NYMEX crude oil futures fell 0.57% to $76.84 a barrel, while ICE Brent crude oil futures fell 0.48% to $82.35 a barrel .
Federal Reserve Chairman Jerome Powell said on Wednesday (Dec. 14) that even if the economy slides into a possible recession, the central bank will raise interest rates further next year. He also said the Fed would pay a higher price if it failed to keep its grip on inflation tighter.
“Oil prices came under pressure today as the Fed’s aggressive monetary policy guidance has rekindled fresh concerns about economic growth, boosting the dollar and driving commodity prices lower,” said Tina Teng, analyst at CMC Markets. .
Also weighing on prices was Canada’s TC Energy Corp, which said it had resumed some operations on the Keystone pipeline. A week earlier, the pipeline had been shut down after a leak in rural Kansas spilled about 14,000 barrels of crude.
Traders await news on when Keystone, the key artery for transporting Canadian crude to US refineries, will have a normal capacity of 6,220 million barrels per day to restart operations. The spill, the largest in nearly a decade, is expected to take weeks to clean up.
Russia’s top Urals crude sold at a bigger discount this month after Europe banned imports of Russian oil, while top buyer India was buying well below the $60 ceiling agreed in the West, they said. said four market sources. Since Russia began its invasion of Ukraine in February, India has become the top destination for maritime exports of Russian Ural crude.
The European Union has banned imports of Russian oil by sea since December 5, prompting Moscow to seek alternative markets, mainly in Asia, for about 1 million barrels a day of exported crude. Also on December 5, the G7 imposed a price cap of $60 on seaborne Russian oil in a bid to limit Moscow’s ability to finance the war in Ukraine. Russia has said it will not respect the limit even if it cuts production.
