Oil prices slump.
Monday saw a slump in oil prices.
The sharp rise in prices since the turn of the year has thus stopped for the time being. In the morning, a barrel (159 liters) of the North Sea variety Brent cost 55.11 US dollars (44.99 Euros). That was 88 cents less than on Friday. The price of a barrel of US West Texas Intermediate (WTI) fell 58 cents to $51.66.
Market observers pointed to price losses on the Asian stock exchanges, which dampened investors’ appetite for risk in the morning and also dragged oil prices down. The price of US oil fell well below $52 after hitting $52.75 last Friday, its highest level since March 2020.
In addition, oil prices were slowed down by the exchange rate development on the foreign exchange market. In the past few trading days, the US dollar has been able to recover a little from significant losses.
The recent gains in the American currency weighed on oil prices because crude oil is traded in dollars on the world market and a stronger dollar makes the raw material more expensive outside the currency area and curbs demand. For now, we are seeing a drop in oil prices.