Oil prices held steady in volatile trading on Monday, as traders balanced worries about tight supplies with fears that global demand could slow due to a strong US dollar and possible large increases to interest rates.
Central banks around the world are certain to increase borrowing costs this week to tame high inflation, and there is some risk of a full one-percentage-point rise by the US Federal Reserve.
Brent crude for November fell 6 cents to $91.29 a barrel, a 0.1% loss, by 1600 GMT. US West Texas Intermediate (WTI) for October rose 3 cents to $85.14 per barrel.
“While news that OPEC missed their production targets last month by over 3 million barrels per day should have been a positive for crude, the macro aspect of interest rate hikes and a possible recession is taking first chair,” said Dennis Kissler, Senior Vice President of Trading at BOK Financial.
Many traders were once again moving to the sidelines to await Fed’s meeting this week, Kissler added.
A British public holiday for the funeral of Queen Elizabeth limited trade volume during London hours on Monday.
OPEC+ fell short of its oil production target by 3.583 million barrels per day (bpd) in August, an internal document showed.
Published in The Express Tribune, September 20th, 2022.
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