Early on Thursday in Asian trading, oil prices declined as concerns about the economy, a rising currency, and consumer demand were eclipsed.
By 00:16 GMT, Brent crude futures had down by 59 cents, or 0.7%, to $88.73 per barrel, while US crude futures had decreased by 54 cents, or 0.7%, to $81.59 per barrel.
After this week’s decline to their lowest point in nine months, the two benchmarks had increased in the previous two sessions despite volatile trading.
After reaching a new two-decade high versus a basket of currencies on Wednesday before falling, the dollar value index saw an upward trend Thursday morning.
By making oil more expensive for buyers using other currencies, a strong dollar lowers the demand for it.
After the British government’s budget plans were revealed last week, which caused the pound to decline, the Bank of England stated that it was committed to stabilising its currency by purchasing as many long-term government bonds, also known as gold bonds, as necessary between Wednesday and October 14.
Due to anticipated poor demand and a higher US dollar, Goldman Sachs cut its 2023 oil price projection on Tuesday, but added that the world’s supply shortages have improved its picture for the long run.
Despite the strengthening dollar and economic worries, oil prices are falling.
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