Commodities

Oil rises in price in the morning, recovering from falling prices the day before

Oil prices are rising this morning after a sharp decline the day before, caused by a stronger dollar and concerns about global fuel demand.

The price of November futures for Brent oil on the London ICE Futures exchange was $91.22 per barrel, which is $0.38 (0.42%) higher than the closing price of the previous session. As a result of trading on Thursday, these contracts fell by $3.26 (3.5%) to $90.84 per barrel.

The price of futures for WTI oil for October in electronic trading on the New York Mercantile Exchange (NYMEX) by this time amounted to $85.38 per barrel, which is $0.28 (0.33%) higher than the final value of the previous session. By the close of the market the day before, the value of these contracts fell by $3.38 (3.8%) to $85.10 per barrel.

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“The dollar has rebounded strongly and is holding near recent highs amid a hawkish Fed policy outlook for the coming months,” StoneX energy analysts wrote in a note.

The September Fed meeting will take place next week, and the market is confident that the central bank will again raise its key rate by 75 basis points to slow down the continued high inflation in the US.

“For the near term, we remain cautious on oil prices as the global economy is under pressure from rising rates, undermining fuel demand,” Peter Cardillo, senior market economist at Spartan Capital Securities, wrote in a note.

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