2023-12-05 05:07:40
A stronger dollar usually makes oil more expensive for holders of other currencies, which may weaken demand for oil.
Price action
By 0402 GMT, Brent crude futures fell one cent to $78.02 per barrel, while US West Texas Intermediate crude futures rose five cents to $73.09 per barrel.
The OPEC+ group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, agreed on Thursday to voluntary reductions in production totaling about 2.2 million barrels per day for the first quarter of 2024, led by Saudi Arabia, which decided to extend its current voluntary reduction.
But at least 1.3 million barrels per day of these cuts represent an extension of the voluntary reduction that Saudi Arabia and Russia are already implementing.
But the war between Israel and the movement resumed "agitation" The Palestinian Authority raised concerns about supplies, as did attacks on three commercial ships in international waters in the southern Red Sea.
This came in the wake of a series of attacks in the waters of the Middle East, following the outbreak of war between Israel and Hamas on October 7th.
Monday’s data showed that US factory orders fell more than analysts’ expectations in October, the highest decline in more than three years, which put pressure on sentiment in the oil market. Analysts said this reinforced the view that high interest rates were starting to limit spending.
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Kelvin Wong, chief market analyst for the Asia-Pacific region at Oanda, said that the Saudi Energy Minister’s statement that OPEC+ production cuts could continue beyond the first quarter of 2024 if necessary provided some support to the market.
Tina Ting, an analyst at CMC Markets, said that oil prices fell in the previous trading session, with traders doubting that supply cuts from OPEC+ would have a significant impact, and with the impact of the rise in the dollar on commodity prices in general.
A stronger dollar usually makes oil more expensive for holders of other currencies, which may weaken demand for oil.
Price action
By 0402 GMT, Brent crude futures fell one cent to $78.02 per barrel, while US West Texas Intermediate crude futures rose five cents to $73.09 per barrel.
The OPEC+ group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, agreed on Thursday to voluntary reductions in production totaling about 2.2 million barrels per day for the first quarter of 2024, led by Saudi Arabia, which decided to extend its current voluntary reduction.
But at least 1.3 million barrels per day of these cuts represent an extension of the voluntary reduction that Saudi Arabia and Russia are already implementing.
But the resumption of the war between Israel and the Palestinian Hamas movement raised concerns about supplies, as did the attacks on three commercial ships in international waters in the southern Red Sea.
This came in the wake of a series of attacks in the waters of the Middle East, following the outbreak of war between Israel and Hamas on October 7th.
Monday’s data showed that US factory orders fell more than analysts’ expectations in October, the highest decline in more than three years, which put pressure on sentiment in the oil market. Analysts said this reinforced the view that high interest rates were starting to limit spending.
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