Currencies and commodities – oil prices under pressure – economy

The euro moved little on Monday and was able to hold on to its gains on Friday. In the evening, the common currency traded at just under $ 1.18, roughly the same level as Friday night. On Friday, a weak dollar gave the euro a boost. The exchange rate had risen by about half a cent after the consumer sentiment in the United States surprisingly and drastically darkened in August.

Fears of slowing demand in China, the world’s largest importer of oil, weighed on oil prices. The prices of the most important types Brent and WTI have at times fallen by about three percent. Investors fear stagnation in demand in the People’s Republic due to government measures against the spread of the delta variant. “The recent increase in viral infections and political containment measures are wreaking havoc,” wrote Commerzbank economists Hao Zhou and Marco Wagner. For example, factories and ports have had to be temporarily closed due to new corona outbreaks. In addition, there have been heavy floods and heavy rains, for example in the economically important province of Henan. This exacerbates existing delivery bottlenecks and increases costs. Chinese refineries cut production amid high inventory levels and falling profits, with crude oil processing falling to its lowest level since May 2020 in July.

Investors were hoping that the minutes of the US Federal Reserve’s July meeting this week would provide further insight into global economic development and further support from central banks. Investors have also kept an eye out for uncertainties surrounding the fall of the Afghan government.

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