(Bloomberg) — Oil prices remain under pressure following widespread declines in global financial markets, even as Saudi Arabia and Russia reaffirmed that they would continue production cuts through the end of the year.
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West Texas Intermediate fell below $88 per barrel. Due to the long-term outlook for global interest rates, the steady rise in oil prices has been halted due to deterioration in overall market sentiment in recent days.
Prices continued to fall on Wednesday despite renewed commitments from OPEC+ leaders Saudi Arabia and Russia to continue further curbs into December. The Producer Group’s Joint Ministerial Oversight Committee will be held online during the day.
Oil prices have been rising since mid-June as supply cuts by the alliance tighten the market, and falling inventories and significant time spreads point to increased competition for instant barrels. Still, the gains in recent trading have come as investors worry that the U.S. Federal Reserve’s interest rate hikes won’t be completed, as a stronger dollar makes the commodity more expensive for most buyers. is facing resistance. A sharp rise in U.S. Treasury yields is also hurting raw materials.
“The U.S. dollar index is at a year-to-date high, and judging from central bank actions and comments, as well as the pilgrimage to curb inflation, the world’s benchmark currencies are entering the bull market, and this rally will continue to hold strong for all markets. “It’s going to be a problem,” said John Evans, an analyst at PVM Oil Associates, a London-based brokerage firm.
Meanwhile, in the United States, the government is scheduled to release figures on crude oil inventories, as crude oil inventories, including those at a storage site in Cushing, Oklahoma, are rapidly declining. Estimates released Tuesday by the industry-funded American Petroleum Institute showed a modest increase in oil sites last week, but a decline nationally, people familiar with the numbers said. Ta. Flows also fell on major U.S. pipelines this week.
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