the prices of Petroleum fell this Tuesday (12) in the morning by about US$ 4.5, amid the stronger dollar and restrictions caused by Covid-19 in China, which affect demand in the main importer of the commodity from the Asian country.
At 8:50 am, the Brent-type price was down $4.3 a barrel to trade at $102.49. It even recorded a drop of more than $4.78, reaching $101.48.
“In the West, the combination of high energy prices and rising interest rates is fueling concerns about a recession that would have a serious impact on oil demand,” reports German bank Commerzbank.
A stronger US currency generally weighs on oil because it makes the dollar-priced commodity more expensive for holders of other currencies.
In addition to the strength of the dollar, another factor weighing on prices is the restrictions caused by the new appearances of Covid-19 cases in China. Some cities are announcing the closure of businesses to contain new infections, which directly impacts the world economy.
OPEC predicts world demand for oil will increase by 2.7 million barrels a day in 2023, slightly slower than in 2022, with consumption supported by better containment of the pandemic and still robust global economic growth.
*With information from Reuters
Source: CNN Brasil
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