The U.S. dollar was able to gain strength yesterday. A strong dollar over pressure on oil prices. In addition, there are concerns about weaker fuel demand in the U.S. and Asia. U.S. crude oil production in the Gulf of Mexico continues to come to a standstill.
WTI crude futures were down 1.4%, or 94 cents, at $68.61 a barrel.
Brent crude futures were down 0.7%, or 53 cents, at $71.78 a barrel.
A stronger dollar makes oil more expensive for holders of other major currencies. The adjustment of the official selling price (OSP) of Saudi crude oil for consumers in Asia has caused speculation. The price cut for all grades of crude oil by at least $1/barrel in October has put heavy pressure on crude oil prices.
The price adjustment could be due to the misjudgment of demand in Asia. Large parts of Asia have recently had to contend with severe COVID-19 outbreaks.
At the same time, oil prices were driven by good economic figures from China. China’s crude oil imports rose by 8% in August.
US regulators reported that crude oil production in the Gulf of Mexico has been at a standstill for over a week. About 79% of crude oil has been affected as a result, or 1.44 million barrels per day.
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Wednesday, September 8, 2021