Oil prices drop from weaker global demand
ANKARA. KAZINFORM - Oil prices decreased on Thursday, aided by a strong US dollar and economic slowdown concerns impacting demand appetite, Anadolu Agency reports.
International benchmark Brent crude traded at $87.20 per barrel at 09.28 a.m. local time (0628 GMT) for a 0.97% decrease from the closing price of $88.05 a barrel in the previous trading session.
American benchmark West Texas Intermediate (WTI), trading at $81.34 per barrel at the same time, decreased 0.99% after the previous session closed at $82.15 a barrel.
Prices came under pressure as the US dollar strengthened to around 20-year highs against other currencies. When the dollar gains in value against other currencies, dollar-denominated oil is more expensive for buyers, thus discouraging trade.
Ongoing fears of a weakening global economy signaling a slowdown in demand also pushed prices lower.
In China, the world's biggest crude oil importer, travel during the week-long national holiday is expected to be at its lowest level in years as the country is committed to its zero-covid policy, further stoking fears of lower demand.
Meanwhile, the Energy Information Administration data late Wednesday showed a drop in US commercial crude oil inventories of 200,000 barrels to 430.6 million barrels, relative to the market expectation of a 333,000-barrel rise, relieving demand concerns but escalating supply fears.