Oil prices saw dips flanked by demand worries and the U.S. dollar surge
A dip in oil prices on Monday close to 2 months ground level, that saw $1 drop before, amid the shrink of supply worries but the anxiety over China’s demand and the U.S. dollar dominance had an influence on the prices.
Brent Crude futures slid by 0.7% to 86.97 per barrel, while WTI crude futures dropped 0.5% at $79.71.
The two gauges ended Friday at their ground level since the 27th of September, stretching drops for the second week in a row. With dips of 9% for Brent crude and 10% for WTI.
Regardless the weak demand forecasts as a consequence of Covid-19 restrictions, the rebound of the U.S. dollar weighed on oil prices.
China is facing a continuous peak in Covid-19 cases similar to April’s hikes in most of the cities, accordingly new measures and restrictions are considered.
Predections of additional interest rate hikes reinforced the U.S. dollar, where the dollar-based commodities became high-priced for the investors.
