Tuesday, 12 July 2022

Oil slides on strong dollar and weaker demand outlook | Reuters

Oil slides on strong dollar and weaker demand outlook | Reuters

Oil prices fell sharply on Tuesday on a strong dollar, demand-sapping COVID-19 curbs in top crude importer China and fears of a global economic slowdown.

Brent crude futures were down by $4.78, or 4.5%, at $102.32 a barrel by 1112 GMT, having earlier sunk as low as $101.48. U.S. West Texas Intermediate crude was down $4.91, or 4.7%, at $99.18 after hitting a session low of $98.40.

The euro lost ground on Tuesday, trading near parity with the dollar, while stock markets fell on the prospect of rising interest rates and worries over economies worldwide. read more

A stronger U.S. currency usually weighs on oil because it makes the dollar-priced commodity more expensive for holders of other currencies.

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