During the European afternoon of Tuesday, September 26, 2023, oil prices fell slightly due to fears that the demand for fuel will be limited by the influence of the main central banks, and in particular the central bank of the US Federal Reserve System (FED), which keeps interest rates higher and higher and the assumption for their reduction will thus last longer than originally expected, report economic correspondents in connection with financial strategists supply, The situation in this matter and the related exchange value of the US dollar, as the main currency of the world commodity market, will remain tense in the critical period, they report experts.
Currently, during the European afternoon on September 26, 2023, at approximately 14:04 CET, the light American WTI (West Texas Intermediate) crude oil was traded on the NYMEX (New York Mercantile Exchange) commodity market at a value of USD 88.84 per barrel with the previous with a daily decrease of -0.93% of the price. This current price thus, according to a comparison based on technical analysis data, represents a total annual growth of +27.33% of its price over the last 52 weeks, with the fact that since the beginning of this year 2023 there has been an increase of +14.2% in price. This price was reached when the exchange value of the USD according to the DXY dollar index was at a value of 105.90 USD points with a daily decrease of -0.09% of the point value, according to this index, which compares the USD with the other six major world currencies.
The European counterpart of WTI crude oil, i.e. Brent crude oil, traded at a value of USD 92.76 per barrel on the indicated day and time, with a -0.57% drop in its price so far. This current price of Brent North Sea oil, according to technical analysis data, represents a growth of +20.95% in its price over the last 52 weeks in the annual overview, of which since the beginning of this year 2023, the price of Brent oil has increased by +12.98%. The world’s top monetary policymakers, namely the US Federal Reserve System in connection with the US dollar, whose exchange value affects commodity market prices, and the European Central Bank (ECB), have in recent days reiterated their commitment to fight inflation, signaling that tight monetary policy may persist longer than previously expected, economic reporters said, adding that higher interest rates are slowing economic growth, which is holding back oil demand.
Currently, the supply of crude oil to the market remains tight as Russia and Saudi Arabia have extended their crude production curbs until the end of 2023. With China’s Golden Week beginning on Sunday, October 1, 2023, oil prices could get a boost from the rise travel and the subsequent demand for oil products from the world’s second largest oil consumer and by far the world’s largest oil importer, which is China. “A tightening of oil supplies could outweigh macroeconomic headwinds. We expect oil to trade above $90 a barrel during the week,” ANZ Research said in a commentary. Oil prices have increased by approximately 30% since mid-2023, which was mainly caused by tighter supply, and according to the JPMorgan banking and investment group, the high price of oil has already erased roughly half a percentage point from overall global GDP growth in the second half of this year, 2023.