Oil prices rose slightly in early Monday’s trading, after falling to their lowest levels in eight months last week, weighed down by a stronger dollar and fearing that sharp hikes in worldwide interest rates could lead to a recession and hurting the demand for fuel.
The dollar index rose to its highest level in 20 years on Monday to limit the rise in oil prices.
Brent crude futures rose 17 cents, or 0.2 percent, to $ 86.32 a barrel at 0116 GMT, while US West Texas Intermediate crude futures rose 21 cents, or 0.3 percent. , at $ 78.95 per barrel. Contracts for the two contracts fell by about five percent on Friday.
Analysts said crude oil should have found some support after Russia strengthened its forces for the war against Ukraine and that EU sanctions on Russian oil are expected to take effect in December.
With lower prices, attention will turn to what the Organization of Petroleum Exporting Countries (OPEC) and its Russia-led allies, dubbed OPEC +, could do when they meet on October 5, after agreeing to cut modestly the production in their last meeting.
“The drop could lead to new OPEC involvement,” ANZ Research analysts said in a statement, referring to comments by Nigerian oil minister Timiper Silva, who said OPEC would consider cutting the production because current prices hurt the budgets of some members.
But in light of the fact that OPEC + produces far less than its target level, any announced cuts are unlikely to have a significant impact, if any, on actual supply.
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