Oil prices rose modestly on Friday morning after a sharp decline the previous day, driven by a strengthening dollar and fears of a slowdown in global fuel demand.
At 9:10 a.m. Bulgarian time, the November futures for the Brent variety rose in price by $0.37 on the London ICE Futures exchange to $91.21 per barrel. On Thursday, the price of these contracts fell by $3.26 (3.5%) to $90.84 per barrel.
The price of October futures for the US benchmark WTI in electronic trading on the New York Mercantile Exchange (NYMEX) at the same time rose by $0.33 to $85.43 a barrel. During the previous session, these contracts fell by $3.38 (3.8%) to $85.10 per barrel.
“The dollar rebounded strongly and held near recent highs amid an outlook for the Federal Reserve’s hawkish monetary policy in the coming months,” StoneX energy analysts wrote.
The September Fed meeting will take place next week and the market is confident that the central bank will again raise its key interest rate by 75 basis points to slow the continued high inflation in the US.
“In the near term, we remain cautious on oil prices as the global economy comes under pressure from rising interest rates, undermining fuel demand,” Peter Cardillo, senior market economist at Spartan Capital Securities, wrote in a research note.