I withdrew Oil price for the third consecutive session, Today, Wednesday, as the dollar strengthened and investors prepared to receive US inflation data amid fuel demand concerns raised by the risks of a global recession and the tightening of “Covid-19” restrictions. in China.
At 04:10 GMT, Brent crude futures fell 46 cents, or 0.5%, to $ 93.83 a barrel.
The price of US West Texas Intermediate crude oil futures fell 54 cents, or 0.6%, to $ 88.81 a barrel.
Both benchmarks fell 2% in the previous session, according to “Reuters”.
The dollar rose to a 24-year high against the yen on Wednesday on fears over inflation. A strong dollar makes dollar-denominated commodities more expensive for holders of other currencies and tends to affect oil and other riskier assets.
“Despite the fundamentals of rising oil prices and a massive cut in production (OPEC), any collapse in high-risk assets could continue to hurt oil prices,” said Stephen Innes, of SBI Asset Management.
The US Consumer Price Report will be released on Thursday.
On Tuesday, the International Monetary Fund cut its global growth forecast for 2023, warning of greater risks of a recession.
But the International Monetary Fund has also urged central banks to continue their fight against inflation, even as investors fear that monetary policymakers could cause a severe economic downturn by increasing funding costs.
The oil market is also under pressure from the tightening of “Covid-19” restrictions in China, the second largest consumer of oil in the world.
Major Chinese cities, including Shanghai and Shenzhen, have stepped up testing for “Covid-19” and tightened restrictions after infections hit their highest levels since August.
As for supply, a preliminary survey conducted by “Reuters” on Tuesday showed that US crude oil inventories rose by about 1.8 million barrels in the week ending October 7, after declining in the past two weeks.
Inventory data was delayed by one day this week due to Monday’s holidays.
