Oil Prices Also Affected By USD Strengthening ! - Kakiforex.com - Financial Market Media No. 1 in the World Oil Prices Also Affected By USD Strengthening ! Oil Prices Also Affected By USD Strengthening !
InstaForex

August 9, 2021

Oil Prices Also Affected By USD Strengthening !

 Oil prices extended their decline earlier in the week, amid rising market concerns that the spread of the Delta variant globally would weaken the outlook for fuel demand, as well as being affected by the USD surge.


Brent crude futures fell 2% to $ 69.29 a barrel, after plunging 6% last week, making it the biggest weekly drop in four months.


Meanwhile, US WTI crude futures were up 1.9% to $ 66.96 a barrel, after declining nearly 7% last week, the biggest drop since October 2020.



China, the world's largest oil consumer, announced tighter travel restrictions last week to curb the spread of the very fast -spreading Delta variant.


The measures include flight cancellations, warnings by 46 major cities from traveling and limits on public transport services in 144 areas worst hit by the epidemic.


In addition, the weakness in crude oil prices was also influenced by the strengthening of the US dollar which made the black commodity more expensive for holders of other major currencies.


The US dollar rose after seeing an encouraging increase in US NFP jobs report readings in July, thus bolstering market expectations to ease the stimulus more quickly.