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 Oct. Trading on the Nymex was down $3.38 to close at $85.10 a barrel. The lowest since 8 Sept in Brent North London. Delivered in Nov. It was down $3.26 to close at $90.84 a barrel.
The International Energy Agency (IEA) said global oil demand growth would be halted in the fourth quarter, hit by a slowdown in China’s economy. and countries in the Organization for Economic Cooperation and Development (OECD).
In addition, investors are concerned that the acceleration of interest rate hikes by the US Federal Reserve (Fed) and the European Central Bank (ECB) will cause the economy to face a recession. and affect the demand for oil