Oil prices drop at settlement by 3%, bringing Brent crude to $ 93.14 a barrel, due to the increase in Corona injuries in China and the strength of the dollar

15-11-2022


(Reuters) - Oil prices settled down nearly $3 on Monday, dragged down by a stronger dollar, as a surge in coronavirus cases in China dashed hopes of a swift reopening of the world's largest importer of crude's economy.
Brent crude futures closed down $2.85, or 3 percent, at $93.14 a barrel, after rising 1.1 percent on Friday. West Texas Intermediate crude futures also closed down $3.09, or 3.47 percent, to $85.87, after rising 2.9 percent on Friday.
The prices of basic commodities rose on Friday after the Chinese National Health Commission modified the measures to prevent and control the Corona virus to reduce the quarantine period for close contacts of infected cases and incoming travelers.
But Covid infections rose in China at the beginning of the week, as Beijing and other large cities reported record numbers of injuries on Monday.
The dollar also rose against the euro and the yen. A strong dollar makes commodities denominated in it more expensive for holders of other currencies and tends to affect oil and other risky assets.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for the growth of global demand for oil this year and next, attributing this to economic challenges.
Domestic supplies in the United States also continue to rise. The US Energy Information Administration said on Monday that oil production in the Permian, the largest shale oil basin in the United States, is expected to rise by 39,000 barrels per day to a record 5.499 million barrels per day in December.
 


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