Oil prices fell today, Tuesday, to continue its losses, which amounted to regarding 2% in the previous session, as the rise of the dollar and the increase in Corona virus infections in China led to fears of a slowdown in global demand, and gold prices fell slightly, affected by the gains of the US currency, amid expectations of continuing to raise interest rates. .
By 09:30 UTC, Brent crude futures fell 2.2% to $94.1 a barrel, following falling $1.73 in the previous session.
The price of US West Texas Intermediate crude reached regarding $89 a barrel, declining by 2.4 percent, following falling by $1.51 in the previous session.
COVID-19 cases in China, the world’s second-largest oil consumer, rose to their highest levels since last August.
In order to limit losses, the Organization of the Petroleum Exporting Countries (OPEC) and the “OPEC Plus” bloc, which includes OPEC allies led by Russia, decided last week to reduce the target production by two million barrels per day, which increased fears of reduced oil supplies.
European Union sanctions on Russian crude and oil products will enter into force next December and February, at a time when the bloc last week gave its final approval to a new set of sanctions on Moscow, including setting a ceiling on the prices of Russian oil exports.
Dollar Rise
The dollar rose on Tuesday for the fourth consecutive session, with concerns regarding high interest rates and geopolitical tensions worrying investors, and a strong dollar reduces demand for oil because it makes it more expensive for buyers who use other currencies.
The dollar index rose 0.3% to 113.14 points, surpassing its lowest level near 110 points last week, and returning to the highest level in 20 years, which it reached last month at 114.78 points.
Meanwhile, the British Pound fell for the fourth consecutive session even following the Bank of England extended its support to the markets.
On Thursday, US data is expected to show that the overall inflation rate reached 8.1% on an annual basis last September, but fell from 8.3% in the previous August.
Core inflation is also expected to rise to 6.5% from 6.3% previously.
gold dip
On the other hand, gold prices also fell slightly today, Tuesday, affected by the dollar’s gains, amid expectations of continuing to raise interest rates, while caution prevailed before the announcement of major inflation data due later this week.
Spot gold prices fell 0.1% to $1,665.89 an ounce by 06:12 UTC, following touching the lowest level since October 3, and US gold futures fell 0.1% to $1,672.60.
US 10-year Treasury yields posted a modest increase to 4%, while the dollar index rose 0.3%, making gold more expensive for buyers holding other currencies.
Although gold is considered a hedge once morest inflation and economic uncertainty, higher interest rates reduce the attractiveness of the non-yielding metal.
As for other precious metals, spot silver prices fell 1.3 percent to $19.39 an ounce, platinum fell 0.3 percent to $896.08, while palladium rose 0.3 percent to $2178.26.
Prices for palladium, which is used in car emissions control devices, as well as platinum, have risen regarding 15% so far this year.