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Crude oil on Tuesday reversed the rally that followed on Monday The OPEC+ decision will slightly increase productionas the usual concerns about a softening of fuel demand due to the possibility of further interest rate hikes have returned and China’s COVID-19 lockdown.
First month Brent oil (CO1:COM) calculated for delivery in November +3% from Monday to 92.83 dollars per barrel, and the American WTI (CL1:COM) October crude rose $0.01 from Friday to close at $86.88/barrel.
The U.S. benchmark traded flat since Sunday due to the Labor Day holiday; WTI prices fell more than 2% from regular settlement time on Monday, according to Refinitiv data.
“Energy traders seem skeptical of any stock as they digest a host of global economic issues, anger over supply uncertainty and the looming fear of a collapse in oil demand,” said Oanda analyst Ed Moya.
A strengthening US dollar, which rose on the back of better-than-expected US services data, is also putting pressure on oil prices.
ETF: (NYSEARCA:USO), (UKO), (BNO), (SCO), (USL), (DBO), (USOI), (GUSH), (DIP)
Separately, crude oil reserves in the US Strategic Petroleum Reserve fell by 7.5 million barrels for the week ended Sept. 2, to 442.5 million barrels, the lowest level since November 1984.
Meanwhile, natural gas prices in the US (NG1:COM) settled -7.3% at $8.133/MMBtu, down 12% over the past two trading days, thanks to lower natural gas prices in Europe as worries about severe winter shortages eased.
