Petrol Prices Decline Amid Supply Concerns and Weak Data

Downtrend in Petrol Prices

Petrol prices are preparing to record their third monthly decline on Friday due to a strong dollar and weak Chinese data. Sanctions imposed by the West on Russia are affecting supply, while the current increase in supply is helping to balance this effect.

What Are the Prices?

Brent crude oil futures fell by 0.55% to 64.64 dollars, while US crude oil (WTI) is trading at 60.14 dollars per barrel, down by 0.71%.

Currency Rates and Investor Appetite in Commodities

ANZ analysts noted in their assessment, "The strong dollar is measuring investor appetite in the commodity markets." The strengthening of the dollar occurred after Fed Chairman Jerome Powell indicated that a rate cut in December is not guaranteed.

Sequential Contraction Data from China

Additionally, after an official survey showing contraction in China's factory activities in October, oil prices declined. Brent and WTI are expected to fall by approximately 3% in October due to supply increases that surpass this year's demand growth.

OPEC and Production Increase

The Organization of the Petroleum Exporting Countries (OPEC) and leading non-OPEC producers continue their efforts to increase production in order to gain market share. The rising supply may mitigate the effects of sanctions restricting oil exports to major buyers China and India from Russia.