Oil prices rose today, Tuesday, to reduce losses incurred in the previous session, while the dollar fell, to reduce the impact of imposing extensive restrictions to fight Covid-19 in China.
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Oil continues to rise
Oil prices rose on Tuesday, reducing losses incurred in the previous session, as the dollar slipped to reduce the impact of radical restrictions to fight Covid-19 in China, increasing fears of a slowdown in fuel demand in the second. world consumer of crude oil.
Brent crude oil futures for January delivery rose $ 1.56, or 1.68%, to $ 94.37 a barrel by 14:29 GMT.
The December contract expired yesterday, Monday, at $ 94.83 a barrel, down 1%.
US West Texas Intermediate crude rose $ 1.63, or 1.88%, to $ 88.16 a barrel, after falling 1.6% in the previous session.
Oil prices rose as the dollar fell today Tuesday from its highest level in a week against a basket of major currencies as traders are studying the possibilities of a Federal Reserve decision at tomorrow’s monetary policy meeting. Wednesday, which includes a less restrictive trend. The decline of the dollar would reduce the price of oil for holders of other currencies and increase the demand for it.
The two benchmarks, Brent and West Texas Intermediate, finished October higher, making their first monthly gain since May, after the Organization of Petroleum Exporting Countries (OPEC) and allies, including Russia, said they They will reduce production by two million barrels per day.
On Monday, OPEC raised its forecast for medium- and long-term global oil demand and said investments worth $ 12.1 trillion were needed to meet this demand despite the shift to renewable energy resources.
These factors offset the impact of concerns on demand, triggered by Covid-19 restrictions that reduced factory activity in China in October and reduced the country’s imports from Japan and South Korea.
