Benchmark oil prices are falling on Tuesday morning after hitting three-week lows the day before.
The price of December futures for Brent on the London ICE Futures exchange at 8:17 a.m. is $89.74 per barrel, which is $0.97 (1.07%) lower than at the close of the previous session. On Monday, these contracts fell by $1.49 (1.6%) to $90.71 per barrel.
Quotes for November futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) by this time decreased by $0.74 (0.83%) to $88.08 per barrel. At the end of the previous session, they fell by $1.97 (2.2%) to $88.82 per barrel.
The main negative factor for commodity markets on Monday was the strengthening of the dollar on the news that the US government had managed to avoid a shutdown, as well as fears of new Federal Reserve rate hikes. The ICE index, which measures the dollar against six major world currencies, is at its highest level since last November.
“The decline in oil prices has very little to do with fundamentals and is driven by rising US government bond yields and a stronger dollar,” wrote Warren Patterson of ING. – “I think that the quotes have the potential for further growth.
Oil grew strongly in the summer and is still supported by concerns about fuel supply on the global market, said Colin Czeszynski, senior market strategist at SIA Wealth Management. “At the same time, from a technical point of view, oil is overbought, and it seems to be entering a correction phase,” he added.
Investors’ attention is now focused on the meeting of the OPEC+ Ministerial Monitoring Committee (JMMC), which will be held on Wednesday.
