Jakarta, CNBC Indonesia – Oil prices fell again for the second day on Monday (9/26/2022). This occurs when there is the threat of lower fuel demand due to the global recession.
Brent crude oil futures for November delivery fell $ 1, or 1.2%, to $ 85.15 a barrel at 09:43 GMT or around 4:43 PM ET Monday afternoon. The contract fell to US $ 84.51, the lowest recorded since January 14, 2022, quoted by Reuters on Monday (9/26/2022).
Meanwhile, US West Texas Intermediate (WTI) crude for November delivery fell 87 cents, or 1.1%, to $ 77.87. WTI fell $ 77.21, the lowest since Jan.6. Both contracts tumbled about 5% on Friday.
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On Monday, the dollar index, which measures the greenback against a virtual basket of major currencies, rose to its highest level in 20 years. A strong dollar tends to limit the demand for dollar-denominated oil.
Reuters also noted rising interest rates by central banks in various oil-consuming countries to counter a spike in inflation, prompting fears of an economic slowdown. In addition to reducing the demand for existing oil.
“The backdrop of global monetary policy tightening by major central banks to curb rising inflation and the greenback’s extraordinary rise to the highest level of the past two decades has raised concerns about an economic slowdown and acted by major wind for the global economy, “said Sugandha Sachdeva of Religare Broking, as quoted by Reuters.
The Organization of the Petroleum Exporting Countries (OPEC) and its Russian-led ally called OPEC + will meet on 5 October. This will be distracting, having previously agreed to moderately cut production.
However, OPEC + produced far below expected production. This means that further cuts may not have a big impact on supply.
Reuters reports from last week’s data, the OPEC + target has missed. That is to say in August of 3.58 million barrels and recorded a greater decline than in July.
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(npb / wia)