empty
 
 

2021.09.2010:26:00UTC+00Oil Prices Tumble On Risk-averse Mood

Oil prices fell around 2 percent on Monday, with a firmer dollar and signs of more U.S. Gulf oil output coming back online weighing on prices.

Benchmark Brent crude futures fell 1.9 percent to $73.90 a barrel, while U.S. crude futures were down as much as 2.3 percent at $70.20.

Supply concerns subsided amid recovery in the Gulf of Mexico. As of Friday, 23 percent of US' Gulf of Mexico crude output, or 422,078 barrels per day, remained shut, the Bureau of Safety and Environmental Enforcement reported.

Meanwhile, according to a report from Baker Hughes, the oil and gas rig count in the U.S. increased by nine to 512 in the week to September 17, the highest level since April 2020.

The total rig count is now up 101 percent over this time last year. Oil rigs rose by 10 to 411 in the week, while gas rigs fell one to 100. The U.S. is the largest consumer in the world.

A stronger dollar also kept oil under pressure. The dollar, seen as a safe-haven, hit a one-month high as rising risk aversion amid pending catastrophe at developer China Evergrande Group weighed on equity markets.

Evergrande's Hong-Kong listed shares plunged to an 11-year low as fears grew of a default on $300 billion of debt.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback