Oil prices fell Tuesday in international markets after a slight rise in the previous two trading days, pressured by an uncertain global economic outlook and a stronger dollar. A stronger dollar makes oil more expensive for holders of other currencies and usually reflects investors’ reduced appetite for risk.
The real-time oil price aggregator at 10 a.m. CET on Wednesday showed Texas WTI crude at $77.2 a barrel and North Sea Brent at $80.71 a barrel.
On the one hand, support for “stronger” oil prices is provided by the drop in crude oil stocks in the United States of America and the still-announced cuts in the production of the group of oil-producing countries OPEC+, with the export of northern Iraq, also suspended. On the other hand, reduced demand due to persistent inflation balances the market.
Investors worried about interest rates
Investors are particularly wary these days of a potential further increase in interest rates by central banks in the United States, Great Britain, and the European Union, which want to curb inflation, which slows economic growth and further reduces energy demand.
The central banks of the three mentioned developed markets are expected to raise interest rates at the next meetings. The Fed, the Bank of England, and the European Central Bank will raise interest rates at their next meetings.
Additionally, traders are awaiting the release of data from the American Petroleum Institute industry group on US inventory levels, which, depending on the results, could weigh on prices in the short term.