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FX.co ★ Oil Prices Fall On Growth Worries, Dollar Strength

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typeContent_19130:::2022-08-22T09:48:00

Oil Prices Fall On Growth Worries, Dollar Strength

Oil prices fell on Monday as the dollar extended its climb amid angst over global growth.

Benchmark Brent crude futures dropped 0.9 percent to $95.85 per barrel while WTI crude futures were down 0.9 percent at $89.666.

Recession worries persisted following hawkish comments from ECB and Fed officials.

The dollar resumed its rally to hover near five-week high after another Federal Reserve official flagged the likelihood of continued aggressive monetary tightening.

Richmond Fed President Thomas Barkin said central bankers were inclined towards faster, front-loaded interest rate increases, even if that meant risking a U.S. economic recession.

Elsewhere, Bundesbank President Joachim Nagel told German newspaper Rheinischen Post that inflation in Germany could hit a 70-year high of 10 percent this fall as Russian natural-gas supplies slow.

A recession appears likely next winter but the European Central Bank should continue increasing rates to tame inflation, he added as Russia announced a three-day halt to European gas supplies via the Nord Stream 1 pipeline at the end of this month, exacerbating the region's energy crisis.

Worries over slowing fuel demand in China, the world's largest oil importer, in part due to a power crunch in the southwest caused by a heatwave, also weighed on prices.

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