- Dollar Strengthens Amid Fed Deliberations on Interest Rate Reductions
- U.S. Imposes Sanctions on Russia’s Premier Tanker Firm Sovcomflot
- Goldman Sachs Increases Forecast for Summer Peak Oil Price to $87 Per Barrel
Oil price decline driven by dollar strength
Oil prices fell on Monday, continuing their downward trend, which is attributable to the strengthening of the US dollar. This development, fueled by expectations of continued high interest rates in the US due to inflation concerns, has made oil more expensive for holders of other currencies.
Impact of interest rate expectations and oil price dynamics
The fall in oil prices followed last week’s losses, which were influenced by the delayed expectation of interest rate cuts in the US. Analysts point to the lack of new market factors and the fluctuation in oil prices between $70 and $90 per barrel since November, due to increased supply in the US, uncertain demand in China and OPEC+ supply cuts amid ongoing geopolitical tensions.
Forecasts and adjustments in the oil market
Despite these dynamics, Goldman Sachs raised its summer season oil price forecast to $87 per barrel, citing disruptions in the Red Sea. In addition, the United States has imposed sanctions on the leading Russian tanker group Sovcomflot and Qatar plans to increase production of liquefied natural gas despite falling prices. In the United States, the recent increase in the number of oil rigs and the expected decline in oil stocks as well as the reopening of refineries could support prices.
