Oil prices fall amid dollar rise, investor concerns about interest rates
Date
6/24/2024 4:11:27 AM
(MENAFN) Oil prices dropped in early Asian trading on Monday, marking the second consecutive session of declines. This downward trend was influenced by the strengthening of the dollar, which followed renewed concerns about prolonged high interest rates and a general lack of risk appetite among investors. As of 0036 GMT, brent crude futures had decreased by 40 cents, or 0.5 percent, settling at USD84.84 per barrel. Similarly, West Texas Intermediate (WTI) crude futures fell by 39 cents, or 0.5 percent, to USD80.34 per barrel.
The appreciation of the dollar has made oil, which is priced in the US currency, more expensive for holders of other currencies, thus impacting the purchasing cost. Despite this recent decline, oil contracts for both Brent and WTI had increased by about three percent the previous week. This rise was attributed to signs of growing demand for oil products in the United States, the world’s largest consumer of oil, alongside the continued production cuts implemented by the OPEC+ group.
Furthermore, oil prices have been bolstered by geopolitical tensions, particularly in the Middle East due to the ongoing conflict in the Gaza Strip, as well as the escalation of Ukrainian drone attacks on Russian oil refineries. These factors have contributed to the overall support for oil prices amidst the fluctuating market dynamics.
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