Oil prices fell on Tuesday, as concern over the prospect of further interest rate hikes and Covid-19 lockdowns weakened demand for fuel, reversing a two-day rally after the first. cut the OPEC+ production target since 2020.
Brent crude closed at $92.83 a barrel, losing $2.91, or 3%.
“OPEC+ news is now on the market and the focus has temporarily shifted to economic and inflationary concerns, among which the two relevant factors are the prolonged Covid lockdowns in China and the ECB rate decision on Thursday,” he said. Tamas Varga, from oil brokerage PVM.
China eased some restrictions against Covid but extended lockdowns in Chengdu, which added to concerns that high inflation and interest rate hikes would affect demand for oil. The European Central Bank is widely expected to raise rates sharply when it meets on Thursday.
A stronger dollar, which rose about 0.6% on better-than-expected data from the US service industry, also put pressure on oil prices.
On the supply side, signs that a pact to revive Iran’s nuclear deal with world powers was less imminent have challenged oil prices, reducing the chances that OPEC+ will go ahead with its production reduction plan, Bob Yawger said. , director of energy futures at Mizuho.
(Reporting by Laila Kearney; with additional reporting by Alex Lawler in London, Sonali Paul in Melbourne and Isabel Kua in Singapore)
Source: CNN Brasil
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