Strong dollar puts pressure on Oil quotes
2023.03.08 13:24
Strong dollar puts pressure on Oil quotes
By Tiffany Smith
Budrigannews.com – Oil costs fell on Wednesday as fears that more forceful U.S. loan cost climbs would pressure financial development and oil request offset a bigger than-anticipated attract U.S. unrefined stocks.
By 12:40 p.m. ET (17:40 GMT), Brent crude futures were down $74 cents, or 0.9%, to $82.55 per barrel. The price of a barrel of U.S. West Texas Intermediate (WTI) crude fell by 99 cents, or 1.3 percent, to $76.59.
According to Andrew Lipow, president of consultants Lipow Oil Associates, “Oil prices are still seeing downward pressure due to the hawkish comments coming out of the Fed indicating higher interest rates for a longer period of time.”
After U.S. Federal Reserve Chair Jerome Powell said that the central bank would likely need to raise interest rates more than expected in response to recent strong data, Brent and WTI both fell by more than 3% on Tuesday.
Oil prices were also held down earlier in the session due to a stronger dollar. The U.S. dollar, which typically trades in opposition to oil, had reached a three-month high against a basket of currencies following Powell’s remarks.
U.S. confidential payrolls expanded more than anticipated in February, highlighting proceeded with work market strength.
There were estimates for a build of 395,000 barrels, but 1.7 million barrels were pulled from crude stocks. Tuesday’s data from the American Petroleum Institute (API) revealed that crude inventories fell for the first time in 10 weeks.
A report from the U.S. Energy Information Administration found that gasoline stocks in the United States decreased by 1.1 million barrels, which was lower than the 1.8 million barrels that were predicted by a Reuters poll, raising concerns about demand. In contrast to expectations for a draw of one million barrels, distillate inventory increased by 138,000 barrels.
Barclays, LONDON: According to the bank, “primarily due to more resilient-than-expected Russian supplies,” (BARC) decreased its 2023 Brent forecast by $6 to $92 a barrel and its 2023 WTI forecast by $7 to $87.
” (We) expect the proceeded with recuperation in common flying interest in China and adjoining nations, an adjustment in modern movement and more slow non-OPEC+ supply development to drive the oil market balance into a shortfall in the not so distant future,” the bank added.
At a conference in Houston, executives and ministers of oil continued to talk about supply tightness. Angola’s secretary of state for oil and gas said that the Organization of the Petroleum Exporting Countries didn’t need to increase oil output to make up for Russia’s cut of 500,000 barrels per day.
In the meantime, a group of bipartisan U.S. senators stated that they had reintroduced legislation to exert pressure on OPEC to stop cutting output.
