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Oil prices drop from weaker global demand

Oil prices drop from weaker global demand
Ongoing fears of weakening global economy signal demand slowdown, sinking oil prices down

By Zeynep Beyza Kilic

ANKARA (AA) - Oil prices decreased on Thursday, aided by a strong US dollar and economic slowdown concerns impacting demand appetite.

International benchmark Brent crude traded at $87.20 per barrel at 09.28 a.m. local time (0628 GMT) for a 0.97% decrease from the closing price of $88.05 a barrel in the previous trading session.

American benchmark West Texas Intermediate (WTI), trading at $81.34 per barrel at the same time, decreased 0.99% after the previous session closed at $82.15 a barrel.

Prices came under pressure as the US dollar strengthened to around 20-year highs against other currencies. When the dollar gains in value against other currencies, dollar-denominated oil is more expensive for buyers, thus discouraging trade.

Ongoing fears of a weakening global economy signaling a slowdown in demand also pushed prices lower.

In China, the world's biggest crude oil importer, travel during the week-long national holiday is expected to be at its lowest level in years as the country is committed to its zero-covid policy, further stoking fears of lower demand.

Meanwhile, the Energy Information Administration data late Wednesday showed a drop in US commercial crude oil inventories of 200,000 barrels to 430.6 million barrels, relative to the market expectation of a 333,000-barrel rise, relieving demand concerns but escalating supply fears.

source: News Feed
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