Monday, December 11, 2023

The barrel rebounded from a three-week low despite the strength of the dollar

NEW YORK, Oct 3 (Reuters) – Oil prices closed slightly higher after falling to a three-week low on Tuesday, as investors weighed the strength of the dollar, a worsening global macroeconomic outlook and tight supply.

* Brent futures rose 21 cents to $90.92 a barrel, after hitting a session low of $89.50, the lowest price since Sept.

* United States West Texas Intermediate (WTI) rose 41 cents to $89.23. Earlier in the session, prices fell to $87.76, the lowest level since September 12.

* In weighing prices earlier, the dollar hit a 10-month high against a basket of six major currencies, after US jobs data pointed to a tense labor market which could lead the Federal Reserve to raise interest rates next month.

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* “We’ve seen an extraordinary rise in (bond) yields and the dollar and that raises concerns about future demand,” said Phil Flynn, analyst at Price Futures Group.

* Higher rates and a stronger dollar make oil more expensive for holders of other currencies, dampening demand for crude oil.

* Investors are watching for any supply update as expectations of tighter supplies loom large following last month’s decision by Saudi Arabia and Russia to extend production cuts until the end of the year.

* Both countries are part of the Organization of the Petroleum Exporting Countries and allies, known as OPEC+. The group is expected to keep its output unchanged at its meeting on Wednesday, keeping supply tight.

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Nation World News Desk
Nation World News Desk
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