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Oil prices hit the lowest level in 3 months after the USD rising
Oil prices continued their decline with the opening of the trading session today in the American market to continue its losses for the sixth consecutive session, thus recording its lowest level in three months. In the United States, demand fell sharply in China, the two largest oil-consuming economies in the world.
Other than that, and what affected the movements of oil prices and pushed them to decline recently, the rise in the levels of the US dollar against most global currencies.
At 10:20 GMT, West Texas Intermediate (US) crude fell by about 2.9%, to trade the price of a barrel around 62.85 US dollars, the lowest since the twenty-first of last May, from the opening level of today’s trading session at 64.58 dollars, and reached the highest price at $64.74 a barrel.
The global benchmark “Brent crude” also fell by 2.6% to the lowest level of $ 65.86 a barrel since the middle of last May, compared to the opening level at $ 67.54, and early in the session, it reached the highest price at $ 67.63 a barrel.
At the close of trading yesterday, Wednesday, US crude lost 2.9%, and Brent international crude also declined by 2.3%, in the fifth consecutive daily loss.
Oil prices affect demand concerns
Oil prices are currently exposed to many negative pressures, especially related to the pace of the recovery of fuel demand in China, the second-largest oil consumer in the world, after the spread of the new “Delta” strain of the Coronavirus.
And oil refining in China fell during the last month to the lowest level on a daily basis since May 2020, after independent refineries reduced production, after the decline in demand levels and the withdrawal of fuel in the country, due to the tightening of closure restrictions and health isolation.
As for the US dollar index trading, the index rose during today’s trading by more than 0.4% to maintain its daily gains for the fourth consecutive session, thus recording its highest level in nine months at 93.50 points, reflecting the continuation of the extensive purchases of the American flag against most major and minor currencies, Which is currently negatively affecting the movements of oil prices and other commodities priced in dollars.
This rise in the dollar’s levels comes thanks to the increasing demand for it as the best alternative investment, especially in light of the possibility of the Federal Reserve Board, “the US Central” tightening monetary policy in the United States.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.