Oil getting cheaper by over 1%

Global oil prices on Aug. 19 morning declined on the publication of the minutes of the meeting of the US Federal Reserve System, which, among other things, contributed to the growth of the dollar, according to trading data, Report informs referring to Prime agency.

As of 9:08 (GMT+4), the price of October futures for Brent crude oil fell by 1.26 percent to $67.37 per barrel; October futures for WTI were depreciating by 1.47 percent, to $64.25 per barrel, September futures fell in price by 1.62 percent, to $64.4.

In the minutes of the regulator’s meeting, it is noted that the conditions suitable for the start of a decrease in the rate of redemption of financial assets from the market may come as early as this year, provided that the US economy develops following expectations. At the same time, some participants in the meeting consider it more reasonable to start reducing the redemption rate only next year. After that, the dollar rate began to rise noticeably, which affected the dynamics of crude prices.

“The overall environment was fragile, to begin with, so I think the Fed minutes yesterday just added another layer of fragility to that,” said Howie Lee, an economist at Oversea-Chinese Banking Corp. “It’s just broad risk aversion across markets.”

Oil prices are also under pressure from concerns about demand. The rise in global coronavirus incidence caused by the spread of the delta strain poses short-term risks to demand as it forces governments to tighten quarantine measures.