London (Reuters)
Oil prices rose on Tuesday to reduce losses incurred in the previous session, while the dollar fell to reduce the impact of imposing broad restrictions to fight Covid-19 in China, which fueled fears of a slowdown in China. fuel demand in the world’s second largest consumer of crude oil.
Brent crude futures for January delivery rose $ 1.56, or 1.68%, to $ 94.37 a barrel by 1429 GMT.
The December contract expired on Monday at $ 94.83 a barrel, down 1%. US West Texas Intermediate crude rose $ 1.63, or 1.88 percent, to $ 88.16 a barrel, after falling 1.6 percent in the previous session.
Oil prices have risen, with the dollar falling from its highest level in a week today 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 minor trend tightening.
The decline of the dollar would reduce the price of oil for holders of other currencies and increase the demand for it. Benchmarks Brent and West Texas Intermediate ended October higher, posting their first monthly gain since May, after the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, said they would cut production. of 2 million barrels per day. On Monday, OPEC raised its forecast for global oil demand in the medium and long term and said that $ 12.1 trillion of investment would be 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.
