Brent Sinks to 9-month Low on Rising Dollar
Brent crude oil prices fell sharply to a nine-month low, resulting in a sell-off that was magnified by a surge in the US dollar, making USD-priced commodities more expensive for investors, Australia’s ANZ Bank said in a Monday note.
Global prices have been slowing down amidst uncertainties that follows changes in market dynamics triggered by inflation surge.
Central banks stepped up efforts to tame inflation, signaling they are willing to tolerate a recession as a trade-off for lower inflation. At current price levels, the market appears to be pricing in the typical impact of a deep recession, the bank noted. READ:Bonds Yield Rises to 12.17% as Naira Sinks
However, the sell-off could push the Organization of the Petroleum Exporting Countries to intervene again, given a previous statement from Nigeria’s oil minister saying current prices are affecting the budget of some OPEC members, ANZ Bank said.
Russia also warned it will not provide energy supplies to countries that join any agreement to cap prices for its crude, the bank said.
# Brent Sinks to 9-month Low on Rising Dollar#
