Oil declines as Asian stocks swing with the US dollar falls to lows

Oil prices fell during Tuesday morning trading after rising favorably
during yesterday’s trading, while Asian stocks were mixed after Wall Street fell,
and the greenback declined below a 20-year peak as the euro rose.

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Oil prices decline and Brent is at $104.3 per barrel

Asian stocks mixed on Tuesday after Wall Street fell

Dollar declines below 20-year peak as euro rises

Oil prices decline and Brent is at $104.3 per barrel

Oil made the biggest gains in more than a month as traders weighed down concerns about supply,
including the prospect of cutting OPEC + production.

By Tuesday morning, Brent crude futures for October fell by $0.81,
or 0.77 percent on the London Futures Exchange, to $104.28 per barrel,
after Brent crude climbed $4.1 percent to $105.09 per barrel on Monday.

West Texas Intermediate (WTI) crude fell in Asia on Tuesday after jumping 4.2 percent,
due to concern about Libya’s potential supply interruption
and rising market forecasts from Goldman Sachs Group.

Despite militia clashes in Libya, the state oil company reported production
of 1.2 million barrels per day on Monday.

The Organization of the Petroleum Exporting Countries (OPEC)
and its allies will meet on September 5, following a sign from Saudi Arabia,
a leading member, that an agreement could be reached to cut production,
as Riyadh believes oil futures do not reflect fundamentals.

Oil’s jump in the opening session of this week pared a monthly decline on concern
about a global slowdown and tight monetary policy that will hurt energy consumption.

However, Europe continues to suffer from an energy crisis
as Russia stifles gas supplies under Ukraine’s crisis,
and the EU moves to tighten restrictions on Moscow.

Benchmark US crude lost 39 cents to $96.62 per barrel
in electronic trading on the New York Mercantile Exchange,
and the futures contract rose by $3.95 yesterday to $97.01.

Asian stocks mixed on Tuesday after Wall Street fell

Stocks fell after Federal Reserve Chairman Jerome Powell indicated on Friday
that the US central bank would commit to a rate hike
strategy to calm multi-decade inflation.

The Shanghai Composite Index fell by 0.6 percent to 3220.47
and Hong Kong’s Hang Seng fell by 1.3 percent to 19762.31.

Tokyo’s Nikkei 225 rose by 1 percent to 28162.52,
after the official unemployment rate stabilized for July.

Seoul’s Kospi rose by 0.7 percent to 2443.90,
and Sydney’s S & P-ASX 200 also rose by 0.5 percent to 6996.60.

On Wall Street, the S&P 500 fell to 4030.61. Friday’s benchmark index
lost 3.4 percent in its biggest single-day decline in two months.

The Dow Jones Industrial Index fell by 0.6 percent to 32،098.99 and
the Nasdaq Composite Index declined by 1 percent to 12017.67.

The sale was widespread, technology and healthcare stocks were the biggest losers,
and energy and utility stocks rose.

Investors are concerned that raising interest rates by the Federal Reserve and
central banks in Europe and Asia could hinder global economic growth.

Fed officials point to the strength of the US labor market as evidence
that the world’s largest economy can afford high borrowing costs,
some acknowledge the possibility of a recession,
but say it may be necessary to curb rising inflation.

The Fed has raised interest rates four times this year,
reaching the last two points of 0.75 percentage points,
triple its usual margin.

Investors expect another big rally at the Fed’s September meeting,
although July retail sales that came in weaker
than expected reduced the likelihood of such a big increase.

Dollar declines below 20-year peak as euro rises

The dollar struggled to regain momentum on Tuesday after the revitalized euro defeated
it from a two-decade high against other currencies.

The two currencies shifted as traders began to intensify
their bets on a significant 75 basis point rate increase by
the European Central Bank as the US Federal Reserve narrowed
down the odds of one of them.

By comparison, bets for a 75-basis point increase by the Fed declined on September 21,
while they were 70 percent higher, from 75 percent on Monday.

The monthly US jobs figures due to be released on Friday
will be closely watched for further clues to interest rate forecasts.

The greenback index, which measures it against a basket of six currencies,
was flat, with the euro weighing the most at 108.72 in Asian trading,
after falling from 109.48 overnight, a level not seen since September 2002.

The euro rose by 0.06 percent to $1.0003, adding to Monday’s rise of 0.32 percent,
its biggest rise in nearly three weeks.

The euro also received support from a decline in European gas prices,
after German Economy Minister Robert Habeck said
that the country was filling gas storage facilities faster than expected.

Analysts see euro yields as still discouraging, and Europe’s worsening gas
crisis means that more violent ECB rises will only exacerbate the recession.

Experts expect the EUR/USD pair to hit 20-year lows in the coming days.

The dollar fell by 0.21 percent to 138.44 yen
after rising to 139 overnight for the first time since mid-July.

Sterling rose by 0.08 percent to $1.17145, continuing its recovery from
a two-and-a-half year low of $1.16495 on Monday.

artical name Oil declines as Asian stocks swing

Oil declines as Asian stocks swing

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