New York September 26 2022: Oil prices hit nine-month lows on Monday in choppy trade, pressured by a strengthening dollar as market participants awaited details on new sanctions on Russia.
Brent crude futures for November settlement fell by $2.27, or 2.63%, to $83.88 a barrel by 1:38 a.m. EDT (1728 GMT). This the lowest since Jan. 14.
U.S. West Texas Intermediate (WTI) crude for November delivery dropped by $2.15 a barrel, or 2.73%; its session low was$76.59, the lowest since Jan. 6.
Both contracts had risen early in the session after slumping by about 5% on Friday.
The dollar index hit a two-decade high against a basket of six currencies, pressuring demand for oil which is priced in the U.S. currency. The impact of a strong dollar on oil prices is at its most pronounced in more than a year, Refinitiv Eikon data shows.
“It’s hard for anyone to expected oil will recover in the wake of a greenback this expensive,” said Bob Yawger, director of energy futures at Mizuho.
