According to the report of the foreign news agency “Reuters”. Because of increase in interest rates and the US dollar by the main central banks of the world. The ability of consumers of other countries to buy crude oil is limited. And there is a fear of a global recession.
Due to which oil prices have been affected.
Brent crude futures for November delivery fell $1.35, or 1.57 percent, to $84.80 a barrel. The report says, with the contract falling to $84.51, the lowest level since Jan. 14.
U.S. West Texas Intermediate crude for November delivery fell $1.15, or 1.46 percent, to $77.59 a barrel. West Texas Intermediate fell to $77.21, the lowest since Jan. 6 is the surface.
According to the report, both contracts decline by 5% following the drop in oil prices.
The dollar index, which measures the dollar against major currencies, hit a 20-year high.
A stronger U.S. dollar reduces demand for dollar-denominated oil because buyers using other currencies to buy oil have to pay more to buy crude oil.
The U.S. is the largest consumer of crude oil, but central banks in other countries, including the U.S., have raised interest rates to combat rising inflation, raising concerns that the recession could lead to a slowdown in the economy.