Oil prices fall significantly at the start of the week
In light of the tank discount flop, many are looking at the development of crude oil prices. These fell noticeably at the start of the week – but are still around $120 a barrel.
Oil prices fell at the start of the new week. Traders cited the strong US dollar and the gloomy corona situation in China as the reasons. On Monday morning, a barrel (159 liters) of North Sea Brent cost $120.26.
That was $1.75 less than Friday. The price of a barrel of West Texas Intermediate (WTI) grade fell $1.82 to $118.85.
At the beginning of the week, the appreciating dollar weighed on oil prices, since a strong US currency made crude oil more expensive for interested parties outside the dollar area and weighed on their demand. The commodity is mostly traded in dollars. The greenback is benefiting from the prospect of significant interest rate hikes by the US Federal Reserve, which is reacting to the high inflation in the country.
In China, the corona situation has meanwhile clouded over again. The metropolises of Beijing and Shanghai reported increasing virus cases. The development of the pandemic in the world’s second largest economy is of great importance for the oil market because the People’s Republic is one of the largest oil consumers in the world.
