Oil Prices Hold Firm at Three-Month High Despite Dollar Pressure
Oil Prices Hold Firm at Three-Month High Despite Dollar Pressure
January 6 in London – A strong dollar pushed down oil prices on Monday, but they stayed at their highest level since the middle of October. The cold weather encouraged buyers, and the thought of stricter sanctions against oil exports from Iran and Russia added to the support.
By 9:50 GMT, it had dropped 33 cents, or 0.4%, to $76.18 a barrel, the best price since October 14.
WTI oil in the US fell 35 cents, or 0.5%, to $73.61, its highest level since October 14.
Oil had been going up for five sessions in a row, thanks to hopes that demand would rise after colder weather in the Northern Hemisphere and more government spending to help China’s economy get back on track.
Bjarne Schieldrop, an analyst at SEB, said that colder than usual weather in northwest Europe and the US, a rise in natural gas prices, and higher refining profit margins all helped Brent oil.
But buyers are also aware of how strong the dollar is. It was written in a report on Monday by Phillip Nova, senior market expert Priyanka Sachdeva.
On Monday, the dollar stayed close to its highest level in two years, making it more expensive to buy things like oil that are paid in dollars.
Investors are also waiting for economic news to get more information about how much energy people use and what the Federal Reserve plans to do about interest rates. The December payrolls report is due on Friday, and the minutes from the last Fed meeting are due on Wednesday.
Also, Saudi Aramco, the biggest oil producer in the world, raised the price of crude oil for buyers in Asia in February. This was the first rise in three months. When these prices go up, it generally means that people expect more of them to be bought.
In terms of supply, the West may impose more restrictions on oil exports from Iran and Russia.
More sanctions are coming from the Biden administration against Russia because of its war in Ukraine. On Sunday, two people who were aware of the matter said that the administration plans to go after Russia’s oil revenues by targeting tankers carrying Russian crude.
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