New York, September 26 (QNA) – Oil prices fell to their lowest level in nine months in today’s trading, under pressure from the dollar’s strength, amid markets anticipation of the new sanctions against Russia.
Brent crude futures for November delivery fell by USD 1.09, or 1.3 percent, to USD 85.06 a barrel, after earlier reaching USD 84.51, the lowest since January 14.
US West Texas Intermediate crude futures for November delivery also fell 90 cents, or 1.1 percent, to USD 77.21 a barrel, the lowest since January 6.
Today, the dollar index, which measures the performance of the US currency against a basket of major currencies, rose to its highest level in 20 years, and a strong dollar usually reduces demand for oil denominated in dollars.
The Russian-Ukrainian war has caused damage to the oil market, as European Union sanctions on Russian crude are scheduled to enter into force next December, in addition to a plan by the Group of Seven major industrialized countries to put a ceiling on Russian crude prices, which could lead to scarce supplies.
The increase in interest rates by central banks in many oil consuming countries has also raised concerns about an economic slowdown that may reduce demand for oil.