NEW YORK / LONDON (dpa-AFX) – Oil prices continued on Tuesday after their weak start to the week. In early trading, a barrel (159 litres) of North Sea Brent was priced at US$84.03 for delivery in March. That was 87 cents less than the day before. The price of a barrel of American West Texas Intermediate (WTI) grade fell by $1.07 to $76.83.
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The appreciating dollar caused a burden. A stronger US currency often has a negative impact on oil demand as the commodity is mostly traded in dollars. If the dollar rises, crude oil becomes more expensive for investors from other currency areas, which often weighs on their demand. As a result, prices on the oil market often fall.
Otherwise, the positive and negative aspects of the oil market are currently roughly balanced. China’s departure from the once strict corona policy is providing economic hope. However, many market participants are rather skeptical about the global economy, since the huge rate hikes by many central banks to combat inflation are only likely to have their growth-dampening effect.
Market participants are following the forthcoming interest rate decisions with even greater interest. With the US Federal Reserve, the European Central Bank (ECB) and the Bank of England, three major central banks will decide on their course this week. Interest rates are likely to continue to rise – it is questionable how things will continue after that. While the Fed and the British central bank are likely to slowly approach the interest rate peak, the ECB could raise its key interest rate for longer. However, the key interest rates in the euro area are also lower than in the USA and Great Britain./bgf/jsl/mis