Low global demand causes oil costs to decline| MENAFN.COM

Tuesday, 06 December 2022 11:30 GMT

Low global demand causes oil costs to decline


(MENAFN) Oil costs fell on Thursday, helped by a strong United States currency and worries about how the economy's slowdown may affect demand.

At 09.28 a.m. regional time (0628 GMT), the price of international benchmark Brent oil was USD87.20 per barrel, down 0.97 percent from the previous trading session's closing price of USD88.05 per barrel.

American benchmark West Texas Intermediate (WTI), which is now trading at USD81.34 per barrel, down by 0.99 percent from the previous session's closing price of USD82.15 per barrel.

As the United States dollar rose to around 20-year highs versus foreign currencies, costs began to decline. Oil priced in dollars is more expensive for purchasers when the value of the dollar increases relative to other currencies, which discourages trade.

Costs were driven lower by ongoing concerns that a deteriorating global economy would indicate a decline in demand.

Travel for the week-long national holiday is anticipated to be at its lowest level in years in China, the world's largest importer of crude oil, as the nation is dedicated to its zero-covid policy, further fueling concerns about decreased consumption.

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