Oil fell on Tuesday after a two-day rally as concern returned about weaker demand and the prospect of more interest rate hikes, trumping support from OPEC+’s first output target cut since 2020.
Brent crude was down $2.33, or 2.4 per cent, to $93.41 at 0940 GMT. U.S. West Texas Intermediate fell from Monday’s trading to $87.02, up 15 cents from Friday’s close. There was no settlement on Monday, the U.S. Labor Day holiday. “The decision to reverse the 100,000 barrel per day increase in September was more symbolic than fundamentally significant,” said Craig Erlam, analyst at brokerage OANDA. “But it will make traders think twice about driving prices lower in the way they have recently.”
Oil soared close to an all-time high of $147 in March after Russia’s invasion of Ukraine exacerbated supply concerns. Concern of a recession in the West, soaring inflation and interest rate hikes have since weighed.Lending oil some support on Tuesday were signs that an agreement to resurrect Iran’s nuclear deal with world powers was less imminent, delaying any return of around 1 million bpd of Iranian crude to the market.
Fake news. I was told economy is booming