Oil prices are falling on Monday amid a general outflow of investors’ funds from risky assets due to signals of a new wave of crisis in the Chinese real estate market.
The US dollar is strengthening, which reduces the attractiveness of investments in commodities. The ICE dollar index is up 0.12% during trading.
The cost of October futures for Brent crude oil on the London ICE Futures exchange at 8:10 a.m. on Monday is $85.97 per barrel, which is $0.84 (0.97%) lower than the price at the previous session’s close. On Friday, these contracts rose by $0.41 (0.5%) to $86.81 per barrel.
The price of September futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) fell by $0.85 (1.02%) to $82.34 per barrel by this time. As a result of the previous trading, the value of these contracts increased by $0.37 (0.5%) to $83.19 per barrel.
Last week, Brent rose in price by 0.7%, WTI – by 0.5%. Both grades finished in the black for the seventh week in a row due to fears of an oil shortage on the global market. Expectations that the US economy will be able to avoid recession despite the Federal Reserve tightening monetary policy supported demand forecasts. At the same time, the reduction in oil supplies from Saudi Arabia to the global market raises fears of a reduction in supply.
“Traders have been overly focused on the economic situation in the United States, ignoring the serious problems in Europe and China,” said Vanda Insights founder Vandana Hari. – “It’s about time they came back to reality.
