Oil prices hit nine-month lows on Monday, before rebounding in a volatile session, as rising interest rates increase the likelihood of a global recession.
It also weighs on quotes, additional pressure coming from the rising US dollar.
On the other hand, market participants await details on new sanctions on Russia.
Brent oil futures for November settlement rose 1.5% to $87.52 a barrel at 11:30 am ET.
The contract even dropped to $84.51, the lowest since Jan. 14.
US crude oil (WTI) was up 1.6% to about $80 a barrel. WTI reached $77.21, the lowest since January 6th.
Last Friday (24), both contracts dropped about 5%.
Supply disruptions stemming from the Russia-Ukraine war have hit the oil market, with European Union sanctions banning Russian oil starting in December, along with a plan by the G7 countries for a price ceiling on Russian oil. which should tighten the offer.
But Bloomberg reported on Monday that EU countries were having a hard time agreeing to a price cap as some raised objections, pushing prices into positive territory.
On the other hand, the index measuring the dollar against a basket of major currencies rose to a 20-year high on Monday. A stronger dollar tends to reduce demand for dollar-denominated oil.
The impact of the strong dollar on oil prices is most pronounced in more than a year, data from Refinitiv Eikon show.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
