Oil prices fall as concerns persist over global demand
Oil prices at the beginning of the week witnessed declines with
a direct impact of concerns about energy demand in light of successive attempts
by central banks around the world, especially the US federal,
to tighten more monetary tightening policies.
This decision had an impact on stopping crude price rises after OPEC’s decision to cut supplies,
while Brent and West Texas crude achieved during last week’s trading.
topıcs
Gold falls on expectations of further rate hikes by the Fed
Oil prices
West Texas crude November delivery fell to $91.95 a barrel by 0.7% on the New York Stock Exchange
While Brent crude, December delivery, fell to $97.17 by about 0.8% on the Europe Stock Exchange.
This prompts traders and traders in the oil markets to be more concerned
about any new surprise decisions by central banks to raise interest rates,
which would try to counter inflation, which in turn ultimately reflects on energy prices.
Fear of a slowdown in the economy
Oil and other commodities, as well as all risky assets and stocks,
remain under pressure due to any concerns about the slowdown,
while oil gives up any gains due after the Russo-Ukrainian war.
U.S. data released last week pointed to the strength of the labor market,
and this also reinforces all expectations of a new increase of about another
75 basis points at the next meeting of the US Federal Reserve.
Any production cuts by OPEC, which was decided to implement before
the comprehensive European ban on Russian oil imports,
which recorded a significant decline in a market also suffering from a shortage of supply.
The implementation of European sanctions on Russia will
be activated in December and February of this year.
While Teng said easing China’s tough measures to tackle Covid-19 could
help recover oil demand in 2023 and thus further price hikes.
Gold falls on expectations of further rate hikes by the Fed
At the beginning of the week, gold prices fell after the release of employment data on Monday,
which indicates more concerns about inflation,
so the Federal Reserve continues to raise interest rates further.
While gold prices were subjected to more pressure, influenced by the strength of the US dollar,
in light of the decline in risk appetite in markets, especially stocks
and therefore the tightening policy had a significant impact on assets during the year.
Where gold recorded a decline to 1681 by about 0.8% per ounce,
after finishing last week at highs of about 2.1%,
in the decline of both silver and platinum, and the dollar index rose by about 0.4%,
which increases the cost of gold, especially holders of other currencies.
Successive interest rate increases and tightening policy by the Federal Reserve were a major
reason for gold bullion falling by about 17% from their March highs,
and US data that appeared last Friday indicated a slowdown in job growth in the United States at a moderate pace,
specifically in September with a decline in unemployment rates,
which in turn indicates the flexibility in the economy,
which indicates the disappearance of
While the director at Compounds Risk Management Services believes that
recent employment data could help the US Federal Reserve continue its monetary tightening policy,
which further weakens the precious metal,
he also added that expectations indicate the trend of gold to $1,650 an ounce.
Investors are still turning significantly towards the US inflation data expected this week,
while the general consumer prices are expected to slow down to reach 8.1 percent annually.
A Reuters analyst also pointed out that gold prices are also expected to decline in gold prices
for spot transactions to 1,674 countries per ounce,
and this is a confirmation of the declines after it had reached $1,689.
artıcle name Oil prices fall as concerns persist over global demand