EnergyWatch

Oil retreats for second day in a row

Crude prices' recent slide are attributed a combination of factors, not least a strengthening US dollar, making oil purchases more expensive for other currency holders.

Photo: NICK OXFORD/REUTERS / X03416

Oil prices are down Friday morning for the second consecutive day, while the US dollar has generally strengthened relative to other currencies off the outlook to interest rate hikes. Sliding prices aside, oil has traded at a more or less flat rate during the week and at the moment is only slightly under a multiple-year peak, Reuters reports.

One barrel of European reference oil Brent sells Friday morning for USD 72.41 against USD 73.87 Thursday afternoon. US counterpart West Texas Intermediate trades concurrently for USD 70.46 against USD 71.74.

Wednesday this week, Brent hit the highest price seen since April 2019, with WTI doing the same relative to October of 2018.

Crude prices' recent dip is attributed to a combination of factors such as a strengthening US dollar, making oil pricier for other currency holders because oil trades in USD.

Moreover, the UK has reported the highest daily rise in Covid-19 infections since February 2019. Add to that a positive statement made by Iran's chief negotiator on the prospects of reaching an agreement to reinstate the nuclear agreement with the country, thus spurring speculation that the US will lift sanctions against Tehran and thereby boost global oil supply.

"The near term’s all very positive. The question is how much further can it rise, how much scope is there if you’re looking at an environment where interest rates are going to rise," says Senior Economist Justin Smirk from Australia's Westpac Banking Corporation, to the news agency.

One troy ounce of gold trades for USD 1,786.85 Friday morning against USD 1,774.15 Thursday afternoon.

A tonne of copper sells at the same times for USD 9,268.5 compared to USD 9,334.75.

English Edit: Daniel Frank Christensen

Equinor continues to trim foreign portfolio  

Stronger dollar sends crude prices down 

 

 

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