Oil prices were also pressured by the dollar’s appreciation. This will reduce the attractiveness of the contract. by making oil contracts more expensive for holders of other currencies.
West Texas Crude Oil Contract Delivered in Nov. It traded on the NIMEX minus $2.08 to close at $87.27 a barrel. Brent North Sea London Delivered in Dec. It was down $1.84 to close at $92.45 a barrel.
Investors are concerned that The Fed will speed up interest rate hikes. After the US producer price index (PPI) was higher than expected today local time.
Jamie Dimon, chief executive of JPMorgan Chase, has warned that the US economy is likely to enter a recession in the next six to nine months.
The Organization of the Petroleum Exporting Countries (OPEC) has cut global oil demand forecasts for this year and next. affected by the economic slowdown soaring inflation and China’s use of stringent measures to control the spread of COVID-19
In the oil market report for the month of October OPEC said demand for oil would increase 2.64 million barrels per day, or 2.7 percent, this year, down 460,000 barrels per day from earlier forecasts.
OPEC also said oil demand would increase by 2.34 million b/d next year, down 360,000 b/d from its previous forecast.
Meanwhile, OPEC lowered its global growth forecast for this year to 2.7 percent from 3.1 percent, and lowered its forecast for next year to 2.5 percent.