Oil slips after three weeks

Oil slipped on Monday, after rising for three straight weeks, as concern about further interest rate hikes that could curb demand balanced the prospect of a tighter market due to supply cuts from OPEC+ producers.

The US dollar rose after US jobs data pointed to a tight labour market, firming up expectations of another Federal Reserve rate hike. Dollar strength makes oil more expensive for other currency holders.

Brent crude was down 54 cents, or 0.6%, at $84.58 a barrel by 1723 GMT on Monday. US West Texas Intermediate slipped 54 cents, or 0.7%, to $80.16.

“We look for this week’s trade to be heavily influenced by inflation data that will likely revive the spectre of higher interest rates that could strengthen the US dollar,” said Jim Ritterbusch, President of Ritterbusch and Associates in Galena.

Published in The Express Tribune, April 11^th, 2023.

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