Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Vista Projects
Copper Tip Energy Services
Copper Tip Energy
Vista Projects


Oil Rises With Dollar’s Descent Countering Demand Worries


These translations are done via Google Translate

Sep 12, 2022

(Bloomberg)

Oil wiped out an earlier decline as a slump in the dollar offset mounting concerns that global demand is weakening.

The global Brent benchmark rose to trade near $94 a barrel, after earlier shedding as much as 1.8% in London. Risk sentiment generally firmed across markets on Monday with equity markets climbing in Europe and the dollar weakenening sharply as traders bet inflation is near a peak.

However, there are concerns the outlook for consumption is worsening as global growth slows and China maintains its strategy of controlling Covid-19 by curbing activity. An outbreak at one of China’s top media schools in Beijing should be stamped out “in the shortest period of time,” local government officials said Sunday.

Decline in the dollar helps buoy crude prices

Crude has sunk by almost a third since June, shedding all the gains since Russia’s invasion of Ukraine. The reversal has come as central banks including the Federal Reserve tighten policy to quell inflation. Still, back-to-back declines in the dollar have helped oil recover from its lows in recent days, while a spate of Chinese crude purchases has spurred some optimism that the real-world market for barrels may have bottomed.

Entelec Conference and Expo 2024
GLJ
ROO.AI Oil and Gas Field Service Software

“The oil price recovers further today, aided by a drop in the US dollar,” said Jens Pedersen, a senior analyst at Danske Bank. Traders are also looking for “further hints on OPEC’s stance on the oil market,” he added.

Join us at 10 a.m. New York time for a discussion on the energy MLIV Pulse survey results with CIBC Private Wealth’s Rebecca Babin and DWS Group’s Darwei Kung.

Chinese authorities have intensified lockdowns and restrictions lately as a key Communist Party meeting looms. Reflecting the challenges, UBS Group AG trimmed its December Brent crude forecast by $15 a barrel.

Prices:
  • WTI for October delivery added 1% to $87.62 a barrel at 10:37 a.m. in London.
    • Prices sank to as little as $81.20 last week, the lowest intraday level since January.
  • Brent for November settlement rose 1.1% to $93.86 a barrel.

In the US late Friday, the Treasury issued rough compliance guidelines for the proposed cap on Russian oil, focusing on the documentation needed by the private sector to adhere to the program, which is meant to kick in from December as Europe tightens sanctions on flows. Deputy Treasury Secretary Wally Adeyemo said that Moscow would have no choice but to participate.

Iranian nuclear talks were also in focus as the UK, France and Germany said at the weekend that they have “serious doubts” about Tehran’s commitment to a new agreement. Should a pact be agreed it could pave the way for greatly increased flows of Iranian crude to the global market.



Share This:



More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE