Agencies-Gaza post
Oil prices fall, end 3 days of gains
Oil prices fell on Monday, ending three days of gains, on concerns that large US interest rate increases could lead to a global economic slowdown and undermine fuel demand.
Brent crude futures for October delivery fell $1.17, or 1.2 percent, to $95.55 a barrel by 0054 GMT, with fears of slowing demand in China due to the energy crisis in some regions, which also affected prices.
US West Texas Intermediate crude futures for September delivery, which are due to expire on Monday, fell $1.12, or 1.2 percent, to $89.65 a barrel. And October contracts recorded 89.29 dollars, down 1.15 dollars, or 1.3 percent.
The price of Brent and West Texas Intermediate each rose for a third consecutive day on Friday, but they fell about 1.5 percent during the week due to the strengthening of the dollar and concerns about demand.
“Investors are concerned that the prospect of a significant Fed rate hike could cause an economic slowdown and drain fuel demand,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
“Restrictions on the use of electricity in some areas of China are also a source of concern because it may affect economic activity,” he added.
State media and a power company reported that Sichuan Province, in southwest China, began limiting electricity supply to homes, offices and shopping malls last week due to the severe energy crisis caused by extreme heat waves and drought.
A stronger dollar, which is hovering around a five-week high, has also affected crude oil prices as it makes oil more expensive for buyers in other currencies.
