Oil prices fall, taking a breather from massive surge

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Commodity

Oil

Writer

IPG Staff2

Oil · 19 July, 2022

Oil prices fall, taking a breather from massive surge

Oil prices fell on Tuesday, taking a breather after surging more than $5 a barrel in the previous session as a plunging dollar supported buying interest and on expectations the U.S. Federal Reserve's interest rate hike may be less than thought.

Commodity

Oil

Writer

IPG Staff2

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July 19 (Reuters) - Oil prices fell on Tuesday, taking
a breather after surging more than $5 a barrel in the previous session as a
plunging dollar supported buying interest and on expectations the U.S. Federal
Reserve's interest rate hike may be less than thought.

 

Brent crude futures for September settlement fell 69
cents to $105.58 a barrel by 0036 GMT. The contract rose 5.1% on Monday, the
biggest percentage gain since April 12.

 

WTI crude futures for August delivery fell 65 cents to
$101.95 a barrel. The contract climbed 5.1% on Monday and the largest
percentage gain since May 11.

 

The August WTI contract expires on Wednesday and the
more actively traded September future was at $98.79 a barrel, down 63 cents.

 

Both benchmarks recorded weekly declines of more than
5% last week.

 

Oil prices have been whipsawed between concerns about
supply as Western sanctions on Russian crude and fuel supplies have disrupted
trade flows to refiners and end-users and rising worries that central bank
efforts to tame surging inflation may trigger a recession that would cut future
fuel demand.

 

Two U.S. Federal Reserve officials indicated last week
that the central bank would likely only raise interest rates by 75 basis points
at its July 26-27 meeting.

 




























A lower hike may mean
less of a economic crunch that would reduce fuel demand.

By Stephanie Kelly/July 19, 2022 8:46 AM GMT+8