Oil falls as much as 40 cents but is on track to close the week higher

Oil prices fall to 8-month low on dollar strength and recession fears

The oil prices They fell this Friday about 5%, to a minimum of eight months, due to the fact that the dollar rose to a maximum of two decades and due to the fear that the rise in interest rates will lead to the world’s major economies into recession.

The futures of Brent fell $4.35, or 4.8%, to $86.11 a barrel by 14:09 GMT, while US crude West Texas Intermediate (WTI) fell $4.58, or 5.5%, to settle at $78.91.

Both contracts were in technically oversold territory with WTI on track for its lowest close since Jan 10, Brent since Jan 13.

In the week, the WTI has fallen by 7% and the Brent by 6%, the fourth consecutive week of declines for benchmark indices and the first time since December 2021.

After the Federal Reserve The United States raised interest rates 75 basis points on Wednesday, central banks around the world did the same, increasing the risk of an economic slowdown.

“The crude oil market is under strong selling pressure as the US dollar remains on a strong upward trajectory amid further reduction in risk appetite,” analysts at energy consultancy Ritterbusch and Associates said.

The US dollar was on track for its highest close against a basket of other currencies since May 2002. A strong dollar reduces demand for oil because it makes fuel more expensive for buyers using other currencies.

On the supply side, efforts to revive the nuclear deal Iran’s 2015 exports have stalled as Tehran insists on shutting down UN nuclear watchdog investigations, a senior US State Department official said, easing expectations of a resurgence in exports. of Iranian crude.

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