Oil prices post third straight weekly plunge after volatile week

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Oil prices post third straight weekly plunge after volatile week

On Friday, both Brent and Crude oil futures’ prices edged lower, evaporating gains of previous session, as worries of a potential rate-hike from the US Federal Reserve as early as before mid-2022 seemingly had weighed heavily on investors’ morale.

Apart from that, a stronger American Dollar, which had witnessed a meteoric rally this week amid optimism that the US Fed would foster a much hawkish approach in order to address a sky-scrapping inflation, had suppressed crude oil contracts’ prices, while a remark from the US President Joe Biden that the White House has been looking to potential options to trim energy prices in a bid to downsize a blistering inflation-surge, which is reportedly eating up a lion’s share of wage-hikes over recent past, added to further strain on both crude oil benchmarks.

Oil falls, posts weekly decline as rate-hike bets mount

Citing statistics, in the day’s commodity market wind-down, UK crude futures’ prices fell 0.80 per cent to $82.17 per barrel, while US West Texas Intermediate (WTI) crude oil contracts shrugged off 1.0 per cent to settle down at $80.79 a barrel.

On the week, Brent fell 0.7 per cent and US WTI crude shed 0.6 per cent. Meanwhile, addressing to Biden Administration’s plan to a potential policy reform aimed at trimming gasoline prices in the United States, a senior oil market analyst at Rystad Energy, Louise Dickson said, “This week has been a good reminder for oil markets that prices are not only affected by the supply-demand trajectory, but also from monetary policy forecasts and by forms of government intervention.

Higher interest rates would provide even further support to the dollar and even more downward pressure on oil prices”.