Oil prices fall amid strong dollar, economic concerns | Inquirer Business

Oil prices fall amid strong dollar, economic concerns

/ 09:20 AM September 29, 2022

Oil prices fell in early Asian trade on Thursday as a strong dollar and economic woes outweighed optimism over consumer demand.

Brent crude futures fell 59 cents, or 0.7 percent, to $88.73 per barrel by 0016 GMT while U.S. crude futures fell by 54 cents, or 0.7 percent, to $81.59. Both benchmarks rebounded in the prior two sessions amid volatile trade after reaching nine-month lows this week.

ADVERTISEMENT

The dollar trended upward on Thursday morning, after hitting a fresh two-decade peak against a basket of currencies on Wednesday before pulling back. A strong dollar reduces demand for oil by making it more expensive for buyers using other currencies.

The Bank of England said it is committed to buying as many long-dated government bonds, know as gilts, as needed between Wednesday and Oct. 14 to stabilise its currency after the British government’s budgetary plans announced last week caused the sterling to tumble.

FEATURED STORIES

As markets tried to digest what the move meant for the pound, the currency whipsawed during Wednesday’s session, jumping as high as $1.09165 and falling as low as $1.05390. It was last up 1.51 percent at $1.08921.

Goldman Sachs cut its 2023 oil price forecast on Tuesday, due to expectations of weaker demand and a stronger U.S. dollar but said global supply disappointments only reinforced its long-term bullish outlook.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: dollar, Economic concerns, oil prices
For feedback, complaints, or inquiries, contact us.

Subscribe to our business news

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2022 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.