Oil quotes moved to growth on the weakening dollar

MOSCOW, 12 Sep — PRIME. World oil prices on Monday afternoon moved to growth against the backdrop of a decline in the value of the dollar against major world currencies, as well as risky sentiment in the stock markets, investors continue to assess the prospects for demand, follows from the trading data.

As of 11:56 Moscow time, the price of November futures for Brent crude grew by 0.98%, to $93.75 per barrel, and October futures for WTI — by 0.84%, to $87.52. In the morning, quotes decreased by an average of 1.5%.

The dollar index (the exchange rate against a basket of currencies of six countries – US trading partners) fell by 1.07%, to 107.84 points. The depreciation of the US currency makes commodities, including oil, more affordable when buying in another currency.

Rising equity markets, meanwhile, support traders’ risk appetite, which is also good for commodity prices. Indices in Australia and Japan rose by 1%, stocks in Europe – rise on average within 1.5%.

Investors continue to assess the underlying factors of the market, in particular – the prospects for demand. Recession risks associated with the tightening of monetary policy by the world’s central banks to combat strong inflation, have a negative impact on demand expectations.

In addition, the situation with coronavirus in China is also of concern, since the PRC is one of the largest importers and consumers of this type of raw material. Beijing continues to adhere to a zero-tolerance policy for the virus, which could lead to a tightening of the quarantine.