Apr 22, 2024 (MENAFN via COMTEX) --
(MENAFN) Oil rates saw a decline on Monday as global markets shifted focus back to market fundamentals following the easing of tension in the Middle East.
At 10:22 AM local time (0722GMT), the international benchmark Brent crude traded at USD85.85 per barrel, marking a 1.65 percent decrease from the previous session's closing price of USD87.29 per barrel. Similarly, the American benchmark West Texas Intermediate (WTI) traded at USD80.75 per barrel at the same time, reflecting a 1.79 percent drop from the previous session's closing of USD82.22 per barrel.
Both benchmarks surged on Friday after news of Israel's retaliatory attack on Iran. Brent crude approached the USD91 threshold amid concerns that escalated conflict could disrupt oil supplies in the Middle East, which holds the majority of the world's oil reserves. However, prices moderated later in the day as both sides downplayed the severity of the attack.
With concerns of a wider conflict subsiding, the oil market refocused on market fundamentals at the start of the new week. Demand uncertainties stemming from global economic uncertainties weighed on prices, exacerbated by a rise in crude oil stocks in the US, the world's largest oil consumer.
The dollar index reached 106 amidst uncertainty over the timing of the Fed's interest rate cuts. A stronger US dollar makes oil more expensive for buyers using other currencies, leading to reduced purchases and downward pressure on prices.
Additionally, renewed US sanctions on Venezuela, which has an export capacity of around 600,000 barrels per day, further fueled supply concerns.
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COMTEX_451251217/2604/2024-04-22T18:57:28
