Web Desk(LTN News): After rising by more than $3 the previous session, oil prices slightly declined on Thursday as concerns over the deteriorating economic outlook and a strong dollar limited demand from buyers using other currencies.
By 0337 GMT, US crude futures had fallen by 35 cents, or 0.4 percentage points, to $81.80 per barrel, while Brent crude futures had fallen by 41 cents or 0.5 percentage points.
Both benchmarks had recovered in the previous two days after this week’s nine-month lows when a brief decline in the dollar index and a larger-than-anticipated decrease in US fuel inventories stoked expectations of a resurgence in consumer demand.
On Thursday, however, the dollar index started to trend higher once more, which reduced investor risk-taking and fueled worries about a global recession.
After the British government’s financial plans were revealed last week, the sterling fell. The Bank of England said it is committed to buying as many long-dated government bonds, known as gilts, as necessary between Wednesday and Oct. 14 to stabilize the currency.
In light of anticipated weaker demand and a higher US dollar, Goldman Sachs lowered its oil price projection for 2023 on Tuesday but added that global supply disappointments strengthened its long-term bullish picture.
Travel during the seven-day national holiday is expected to be at its lowest level in years in China, the world’s largest importer of crude oil, as Beijing’s steadfast zero-Covid regulations encourage people to stay at home and economic difficulties restrain spending.
