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Brent futures fell 41 cents.









(Reuters) – Oil prices fell slightly on Thursday after gaining more than $3 in the previous session, with a strong dollar capping demand for oil from buyers using other currencies and concerns over the shaky economic outlook clouding market sentiment.

Brent crude futures fell 41 cents, or 0.5%, to $88.91 a barrel at 0337 GMT, while US crude futures fell 35 cents, or 0, 4%, to $81.80.

Both benchmarks had rebounded in the previous two sessions after hitting nine-month lows this week following a temporary dip in the dollar index and a bigger-than-expected drop in U.S. fuel inventories raised hopes of a recovery in consumer demand.

However, the dollar index resumed an uptrend on Thursday, dampening investors’ risk appetite and stoking fears of a global recession.

The Bank of England said it was committed to buying as many long-term government bonds, known as gilts, as needed between Wednesday and October 14 to stabilize its currency after plans British government budgets announced last week sent the pound plummeting.

Goldman Sachs cut its 2023 oil price forecast on Tuesday, citing expectations of weaker demand and a stronger U.S. dollar, but said global supply disappointments bolstered its long-term bullish outlook. .

In China, the world’s largest crude oil importer, travel during National Day week is set to hit its lowest level in years as Beijing’s lingering zero COVID rules urge people to stay home and economic difficulties are holding back spending.

Citi economists lowered their forecast for China’s GDP growth by 5% year-on-year to 4.6% for the fourth quarter of 2022.

“Strict COVID measures and a weak real estate sector continue to cloud growth prospects,” Citi analysts wrote in a note Wednesday.

On the other side of the world, the European Union has proposed a new round of sanctions against Russia for its invasion of Ukraine, including tougher trade restrictions, more individual blacklists and an oil price cap for third countries.

But the 27 member countries of the bloc will have to overcome their own differences to implement them.

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