New York, United States
Oil prices fell at the end of the day on Tuesday due to the strengthening of the dollar and some caution from OPEC + (OPEC and its allies) over the reactivation of demand.
Thus the North Sea Brent barrel for delivery in November ended down 0.73% at $ 71.69 in London.
Meanwhile in New York the WTI for delivery in October yielded 1.35% to $ 68.35.
Monday was a holiday in the United States for Labor Day so the variation in the WTI is calculated in relation to last Friday’s close.
The strengthening of the dollar, which makes green commodities quoted in greenbacks more expensive for investors in other currencies, pushed down the quotations of the cru, noted Bart Melek, of the Canadian TD Securities.
Wall Street’s weakness, with the Dow Jones down again, also weighed on the stock’s quotes, the specialist added.
Oil was also affected by a downward revision of growth forecasts in the United States presented by several economists, in particular those of the Goldman Sachs business bank, which takes into account in its assessment the prolonged effects of the coronavirus delta variant and the end of federal economic support measures.
“It’s quite logical: reduced economic growth means anticipating weaker (oil) demand,” Bart Melek argued.
For this analyst, OPEC and its allies within the OPEC + mechanism, they expect an economic revival and a slower exit from the pandemic.