Oil gives up gains as soaring US dollar offsets Putin’s troop mobilization

Oil gives up gains as soaring US dollar offsets Putin’s troop mobilization
Oil gives up gains as soaring US dollar offsets Putin’s troop mobilization

Thank you for reading the news about Oil gives up gains as soaring US dollar offsets Putin’s troop mobilization and now with the details

Jeddah - Yasmine El Tohamy - NEW YORK: Oil prices gave up early gains on Wednesday as a soaring dollar and global recession fears offset worries about a Russian military mobilization.

A big increase in US crude stocks could also weaken oil prices. Analysts forecast US crude stocks rose 2.2 million barrels last week.

On Tuesday, data from the American Petroleum Institute industry group showed crude stocks rose 1.0 million barrels in the week to Sept. 16.

Brent futures were 10 cents, or 0.1 percent, lower at $90.52 a barrel by 10:13 a.m. EDT (1413 GMT), while US West Texas Intermediate crude fell 28 cents, or 0.3%, to $83.66.

Both contracts were up more than $2 earlier in the session.

Putin said he had signed a decree on partial mobilization, saying he was defending Russian territories and that the West wanted to destroy the country.

“The oil complex (advanced) largely off Putin’s apparent escalation of the Ukraine war,” analysts at energy consulting firm Ritterbusch and Associates said, noting the strong dollar and expected higher US interest rates will limit oil price gains.

Oil prices soared to a multiyear high in March after the Ukraine war broke out. EU sanctions banning seaborne imports of Russian crude will come into force on Dec. 5.

Investors this week have been bracing for another aggressive interest rate hike from the US Federal Reserve that they fear could lead to recession and plunging fuel demand.

The Fed is widely expected to hike rates by 75 basis points for the third time in a row later on Wednesday in its drive to rein in inflation.

The dollar was on track for its highest close against a basket of other currencies in over 20 years. A strong dollar reduces demand for oil by making the fuel more expensive for buyers using other currencies.

Signs of a recovery in Chinese demand, hit by COVID-19 shutdowns, had also helped lift prices earlier in the session.

At least three Chinese state oil refineries and a privately run mega refiner are considering increasing runs by up to 10 percent in October from September, eyeing stronger demand and a possible surge in fourth-quarter fuel exports, people with knowledge of the matter said.

Meanwhile, the US said that it did not expect a breakthrough on reviving the 2015 Iran nuclear deal at this week’s UN General Assembly, reducing the prospects of a return of Iranian barrels to the international market.

The OPEC+ producer grouping — the Organization of the Petroleum Exporting Countries and associates including Russia — is now falling a record 3.58 million barrels per day short of its production targets, or about 3.5 percent of global demand. The shortfall highlights the underlying tightness of supply in the market.

These were the details of the news Oil gives up gains as soaring US dollar offsets Putin’s troop mobilization for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

PREV Saudi food chain Raydan wins CMA’s approval to cut capital by 53%
NEXT Saudi Shareek initiative to increase private sector GDP contribution appoints new CEO

Author Information

I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community. Address: 2077 Sharon Lane Mishawaka, IN 46544, USA Phone: (+1) 574-255-1083 Email: [email protected]