Oil prices fell again on Monday, with Brent falling below $85 per barrel for the first time since January, as the US dollar surged and recessionary fears mounted.
Brent futures for November settlement were trading around $84.92 at 14.00 hrs. Thai time, while, WTI crude oil was at $77.98
As a Bloomberg index of the US dollar rose to a record high, the global oil benchmark dropped to its lowest intraday level since January. It lost about 6% last week, marking the longest losing streak of the year.
Oil prices are expected to fall substantially this quarter as key central banks, led by the Federal Reserve, aggressively hike interest rates to combat inflation, dampening expectations for energy demand and lowering investors’ appetite for risk. Commodities denominated in US dollars have become more expensive for foreign buyers as a result of the Fed’s tightening.