while the And West Texas Intermediate (WTI) for the month of November lost 2.6% to $76.71, the lowest level since the first session of this year in New York, last January 3.
For Andy Libow of Lipo Oil Associates, “The lower prices have two drivers. The first is the strength of the dollar. The second is fears that higher energy prices in Europe will destroy global demand.”
In a month and a half, the dollar index, which measures the development of the US currency in relation to a basket of currencies, rose by 10%, a rare contrast in the foreign exchange market. A strong dollar makes the price of a barrel higher for investors in other currencies.
For the analyst, the decline in Europe’s thirst for crude oil may spread to China, an important trading partner of the old continent. According to Lipow, the US economy will also be affected.
“Chaos in the foreign exchange market could continue to affect crude oil prices no matter what OPEC+ does in the short term.” Edward Moya of Oanda said in an analytical note.
OPEC+ (OPEC and its allies) will meet on October 5th to determine production levels in November.
In any case, this alliance produced 3.58 million barrels per day less in August than the 43.85 it had promised to market, due to a lack of sufficient capacity on the part of its members. However, prices fell.