Oil Prices Dip After U.S. Dollar Strengthens
Oil prices fell on Wednesday after the U.S. dollar staged the biggest rally since March 2023. The U.S. dollar strengthened and outperformed other global currencies this week sending oil prices to dip. Brent crude futures fell to $77.93 per barrel, and crude futures (WTI) dipped to $71.97 a barrel. The U.S. dollar index (DXY), on the other hand, went from 102 to 103.5 in the last 24 hours. A stronger U.S. dollar reduced the demand for USD-denominated oil for buyers paying in other local currencies.
Also Read: 3 Countries Agree To Launch BRICS Currency To Challenge US Dollar
Also, the U.S. dollar reached a one-month high after the Federal Reserve pushed back against aggressive interest rate cuts. Falling oil prices are further strengthening the U.S. dollar as investors are betting on its rise to make quick profits.
U.S. Dollar Makes the Oil Prices Dip This Week
The dip in oil prices also comes on the heels of the Red Sea attack. A US-owned ship was struck by a missile attack off the coast of Yemen in the Red Sea. The anti-ship ballistic missile came from Houthi-controlled areas of Yemen, according to the US Central Command. The Red Sea attack disrupted the normal movements of ships leading to turbulence in the U.S. and global markets.
Also Read: BRICS: Investors Bet Indian Rupee Will Rise, US Dollar To Decline
Concerns of the conflict being escalated made the U.S. stock market dip on Monday and Tuesday. Gold prices also crashed on Wednesday falling from $2,050 to $2,024 on Wednesday. This is the single biggest fall in gold prices this year in January 2024. Read here for a realistic price prediction for gold in 2024.
Also Read: BRICS: JP Morgan Predicts Future of the US Dollar Against Chinese Yuan
“While oil benchmarks may not reflect the Red Sea attacks, the realized price for oil and oil products for consumers has increased given the disruption to trade flows through the Red Sea and Suez Canal,” said Vivek Dhar, Commodities Strategist at the Commonwealth Bank of Australia.
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Oil Prices Dip After U.S. Dollar Strengthens
Oil prices fell on Wednesday after the U.S. dollar staged the biggest rally since March 2023. The U.S. dollar strengthened and outperformed other global currencies this week sending oil prices to dip. Brent crude futures fell to $77.93 per barrel, and crude futures (WTI) dipped to $71.97 a barrel. The U.S. dollar index (DXY), on the other hand, went from 102 to 103.5 in the last 24 hours. A stronger U.S. dollar reduced the demand for USD-denominated oil for buyers paying in other local currencies.
Also Read: 3 Countries Agree To Launch BRICS Currency To Challenge US Dollar
Also, the U.S. dollar reached a one-month high after the Federal Reserve pushed back against aggressive interest rate cuts. Falling oil prices are further strengthening the U.S. dollar as investors are betting on its rise to make quick profits.
U.S. Dollar Makes the Oil Prices Dip This Week
The dip in oil prices also comes on the heels of the Red Sea attack. A US-owned ship was struck by a missile attack off the coast of Yemen in the Red Sea. The anti-ship ballistic missile came from Houthi-controlled areas of Yemen, according to the US Central Command. The Red Sea attack disrupted the normal movements of ships leading to turbulence in the U.S. and global markets.
Also Read: BRICS: Investors Bet Indian Rupee Will Rise, US Dollar To Decline
Concerns of the conflict being escalated made the U.S. stock market dip on Monday and Tuesday. Gold prices also crashed on Wednesday falling from $2,050 to $2,024 on Wednesday. This is the single biggest fall in gold prices this year in January 2024. Read here for a realistic price prediction for gold in 2024.
Also Read: BRICS: JP Morgan Predicts Future of the US Dollar Against Chinese Yuan
“While oil benchmarks may not reflect the Red Sea attacks, the realized price for oil and oil products for consumers has increased given the disruption to trade flows through the Red Sea and Suez Canal,” said Vivek Dhar, Commodities Strategist at the Commonwealth Bank of Australia.
Read More