Crude prices fell on Friday on demand concerns linked to higher interest rates and a stronger dollar, although losses were limited by Russia’s mobilization campaign and what appears to be an impasse in talks over a nuclear deal with Iran.
By 1100 GMT, Brent crude futures fell $2.91, or 3.21%, to $87.56 a barrel, with US West Texas Intermediate crude futures dropping $2.94, or 3.46%, to $80.61.
And global stocks recorded their lowest level in two years, while the dollar index recorded its highest level in two decades, which pushed oil to decline.
“Recession fears, an increase in interest rates, and the consequent strength of the dollar are outweighing geopolitical tensions,” said Tamas Varga, analyst at PVM Oil Associates.
“Oil gains will be limited as long as the dollar is strong, although the referendum in eastern Ukraine may increase tension between Russia and the West, especially if Ukrainian allies provide additional assistance to Ukraine to regain these territories,” he said. added.
pushed by the environment
Russia launched a referendum on Friday to annex four occupied regions of Ukraine, in what Kyiv called an illegal farce that it said included threats to residents if they did not vote.
After the US Federal Reserve raised interest rates by 75 basis points on Wednesday, central banks around the world followed suit by raising rates, raising the risk of an economic slowdown.
On the oil supply front, efforts to revive the 2015 Iran nuclear deal have stalled as Tehran insists on shutting down investigations by the United Nations’ International Atomic Energy Agency, a senior US State Department official said, dampening expectations of the return of its crude exports.
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