Categories: Business

Oil closes lower, pressured by dollar appreciation and decisions by BCs

Oil closes lower, pressured by dollar appreciation and decisions by BCs

Oil closed lower on Thursday (2) extending the losses of Wednesday (1st), pressured by the strengthening of the dollar after monetary policy decisions by the European Central Bank (ECB) and the Bank of England (BoE, in the acronym in English) in the morning of this Thursday. In addition, the prospects of recession in developed economies continue to impact business.

On the New York Mercantile Exchange (Nymex), WTI oil for March 2023 closed down 0.69% ($0.53), at $75.88 a barrel, while Brent for April, traded on the Intercontinental Exchange (ICE), closed down 0.81% (US$ 0.67), at US$ 82.17 a barrel.

For CMC Markets, oil investors seem not to be so sure about the financial market’s perception that the planet’s major central banks may be close to interrupting the monetary tightening cycle. In addition, concerns about Chinese demand weigh.

For analyst Edward Moya, from Oanda, oil prices are in “no man’s land” amid uncertainties with prospects for reopening China. “Risk assets are surging as the Fed nears the end of its rate hike cycle, but oil is lagging behind as expectations of a soft and shallow recession remain.”

At the press conference after the monetary policy decision, the BoE chairman, Andrew Bailey, and the institution’s director Dave Ramsden mentioned that the UK’s recession confirmed the recession forecast, despite indicating that the contraction should be milder than forecasts. indicate.

On Wednesday, the president of the US BC, Jerome Powell, said he foresees lower growth, but not a recession in the US.

Source: CNN Brasil