Oil rates see slight decrease due to pressure from strong US dollar
Date
2/26/2024 7:59:32 AM
(MENAFN) On Monday, oil rates experienced a slight decline due to the pressure from a strong US dollar, with investors looking ahead to Thursday's release of the Personal Consumption Expenditures (PCE) price index, which influences the US Fed's monetary policy decisions.
Brent crude, the international benchmark, was trading at USD80.60 per barrel, down 0.25 percent from the previous session's close of USD80.80. Meanwhile, West Texas Intermediate (WTI), the American benchmark, stood at USD76.24 per barrel, reflecting a 0.33 percent decrease from the previous session's close of USD76.49.
The strengthening US dollar has made oil more expensive for holders of other currencies, potentially reducing demand and contributing to the bearish sentiment in the market. This rise in the dollar value was fueled by expectations that the Fed might delay interest rate cuts, buoyed by positive earnings reports from US multinational corporations like Nvidia.
Investors are eagerly awaiting the release of the PCE price index on Thursday, as well as oil demand data from the US Energy Information Administration (EIA) scheduled for Wednesday. Last week, US stockpiles showed a significant increase of approximately 3.5 million barrels, and if this trend continues, it could further push oil prices down.
However, geopolitical tensions in the Middle East are providing support to prices due to associated supply risks.
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