Register

Peak Oil is You


Donate Bitcoins ;-) or Paypal :-)


Page added on September 26, 2022

Bookmark and Share

Oil tumbles as ‘wrecking ball’ dollar piles on commodity losses

Oil sank again as the dollar’s surge to a fresh peak and mounting recessionary concerns threatened global demand, deepening a rout.

West Texas Intermediate fell below $78 a barrel, hitting the lowest intraday level since January, as a Bloomberg gauge of the US currency rallied to an all-time high. US benchmark crude collapsed more than 7% last week for a fourth straight weekly drop, the longest losing run this year.

Crude is on track for its first quarterly slump in more than two years as central banks including the Federal Reserve raise interest rates aggressively, hurting the outlook for energy demand and sapping investors’ appetite for risk. The Fed’s tightening has helped to drive the US dollar to a record, making commodities priced in the currency more expensive for overseas buyers.

The slump in prices may induce the Organisation of Petroleum Exporting Countries and its allies to consider intervening to stem the slide, either verbally or by announcing a reduction in output. Earlier this month, OPEC+ announced a token supply cut, and said members would monitor the market.

The upward pressure on the dollar “is a wrecking ball for commodities,” Gary Ross, the chief executive officer of Black Gold Investors LLC, told a conference in Singapore, flagging scope for OPEC cuts. “The supply-demand balance has caught up and, as we’re entering the fourth quarter, we’re building stocks.”

Prices:
  • WTI for November delivery was 1.1% lower at $78.85 a barrel on the New York Mercantile Exchange at 6:43 a.m. in London.
  • Brent for November settlement dropped 1.2% to $85.16 a barrel on the ICE Futures Europe exchange.
  • The Bloomberg Dollar Spot Index spiked as much as 1.1%, and is 15% higher year-to-date.

Crude traders were also keeping tabs on the path of Tropical Storm Ian, which is expected to strengthen into a hurricane this week as it approaches the Florida mainland. At present, forecasters are struggling to pinpoint where it will make landfall, possibly anywhere from the Panhandle to Tampa Bay.

Widely watched time spreads have narrowed, suggesting an easing of near-term tightness. Brent’s prompt spread — the gap between its two nearest contracts — was at $1.06 a barrel, down from almost $2 a month ago.

“At current levels, it appears the market is now pricing-in the typical impact of a deep recession,” Australia & New Zealand Banking Group Ltd. said in a note. “The sell-off could see OPEC intervene again.”

 

 

moneyweb



7 Comments on "Oil tumbles as ‘wrecking ball’ dollar piles on commodity losses"

  1. randomguyonabike on Mon, 26th Sep 2022 6:40 pm 

    kiss your worthless asses goodbye. this suck is imploding.

  2. Theedrich on Wed, 28th Sep 2022 12:22 am 

    Joe says he’ll stop NS2, then NS sabotage occurs. Now desperate, debilitated Europe will have to buy ultra-expensive U.S. liquified natural gas, even as American regime shills say the sabotage benefits “nobody.”

    Yup.  Just a fluke of history, “accidentally weakening Germany, strengthening the U.S.,” just like that document alleged to have come from the RAND Corp. says.

    Funny, how these things happen.

  3. peakyeast on Wed, 28th Sep 2022 6:29 am 

    It is obviously a US move for many reasons. It is obviously not a Russian move – most obviously because the losses in both material and bargaining power far outweigh any of the ridiculous arguments that say that they did it.

    It is like a taxi driver burning his vehicle to tell a customer he cant have a paid trip…. Only seems reasonable to the fucking morons in MSN and western governments.

  4. makati1 on Wed, 28th Sep 2022 4:34 pm 

    Theedrich, but most dumbed down, brainwashed Amerikans will believe the MSM version because they cannot think for themselves any more. It’s time for the West to pay for their crimes. So be it.

  5. makati1 on Wed, 28th Sep 2022 4:38 pm 

    Peaky, logical thinking is foreign to most Amerikans. They are used to being told what to believe and think no matter how impossible or ridiculous. That mental sickness needs to be stamped out soon, but I think it will take a catastrophe to the US to do it. I’m waiting…

  6. Theedrich on Wed, 28th Sep 2022 10:21 pm 

    The Biden crime syndicate is utterly nihilistic. Having blown up both Nord Stream pipelines, it intends to destroy Europe by means of energy starvation.  (See the strategy outlined in the mysterious document, “Weakening Germany, Strengthening the U.S.,”  viewable in English and German at http://brennus.bluedomino.com/Misc/RAND_Report__Dt-En.htm, by unknown composers.)  The planeticidal regime is also threatening to destroy the world with nuclear weapons if Russia wins in America’s Ukrainian proxy war against Russia and frustrates Washington’s plan to enslave the earth.  Of course, the American masses supinely accept the death sentence which the World Economic Forum and the Democrat Party have passed on them.

  7. kaufen osterreichischen fuhrerschein on Mon, 26th Feb 2024 9:51 am 

    Wenn Sie mit dem von unserer Agentur erworbenen Führerschein fahren, müssen Sie diesen bei Polizeikontrollen frei vorzeigen können, da die von der Polizei in einem Datenauslesecomputer überprüften Angaben zum Führerschein zeigen, dass er echt und in der staatlichen Datenbank registriert ist. https://www.echtedokumente.at/kaufen-osterreichischen-fuhrerschein

Leave a Reply

Your email address will not be published. Required fields are marked *