Oil prices drop as U.S. dollar soars

  • World
  • Tuesday, 27 Sep 2022

NEW YORK, Sept. 26 (Xinhua) -- Oil prices fell on Monday, pressured by strength in the U.S. dollar.

The West Texas Intermediate (WTI) for November delivery decreased 2.03 U.S. dollars, or 2.6 percent, to settle at 76.71 dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery lost 2.09 dollars, or 2.4 percent, to settle at 84.06 dollars a barrel on the London ICE Futures Exchange.

The above moves came as an upward momentum in the U.S. dollar continued after the Federal Reserve enacted the third consecutive three-quarter-point rate hike last week and signaled a more hawkish path ahead.

The dollar index, which measures the greenback against six major peers, jumped 0.81 percent to 114.1030 in late trading on Monday, following a 1.65-percent surge in the prior session. Historically, the price of oil is inversely related to the price of the U.S. dollar.

For the week ending Friday, the U.S. crude benchmark dropped 7.1 percent, while Brent declined 5.7 percent, based on the front-month contracts.

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