A darkening economic outlook dragged U.S. oil prices on Monday to their first close below $80 since September.
The world's most liquid oil contract,
A darkening economic outlook dragged U.S. oil prices on
Monday to their first close below $80 since September.
The world's most liquid oil contract, WTI crude oil futures,
which is also the US benchmark because it has the largest share of total US
production, fell below $80
This is the first time since September 30 that the price
falls below 80$.
In this past week alone, it went down to more than 11%
despite declining inventories and OPEC+ cuts.
Reasons for this drop are various but according to
speculators, it is likely due to concerns over geopolitical tensions and the
possibility for China to close down its borders due to rising numbers of Covid
cases.
But China has technically re-opened, which means that demand
should go up.
As winter is approaching, energy consumption should go up.
But that also does not seem to be happening.
As the US dollar has come under some serious firepower on
the downside, the price of oil is supposedly higher in dollar terms.
But when the US dollar is strong, fewer US dollars are
required to buy a barrel of oil.
Around 1305 GMT, a barrel of WTI for delivery in December
was down 1.9 percent at $80.08.
As for the main EU contract, Brent for delivery in January
went down 1.6 percent at $88.33.
oil futures,
which is also the US benchmark because it has the largest share of total US
production, fell below $80
This is the first time since September 30 that the price
falls below 80$.
In this past week alone, it went down to more than 11%
despite declining inventories and OPEC+ cuts.
Reasons for this drop are various but according to
speculators, it is likely due to concerns over geopolitical tensions and the
possibility for China to close down its borders due to rising numbers of Covid
cases.
But China has technically re-opened, which means that demand
should go up.
As winter is approaching, energy consumption should go up.
But that also does not seem to be happening.
As the US dollar has come under some serious firepower on
the downside, the price of oil is supposedly higher in dollar terms.
But when the US dollar is strong, fewer US dollars are
required to buy a barrel of oil.
Around 1305 GMT, a barrel of WTI for delivery in December
was down 1.9 percent at $80.08.
As for the main EU contract, Brent for delivery in January
went down 1.6 percent at $88.33.