Oil prices declined today, Thursday, in early Asian trading after recording the largest decline in a month in the previous session, as it erased expectations of raising interest rates in the United States following a decline in crude inventories in the country.
Brent crude futures for November delivery declined 67 cents, or 0.72 %, to $92.86 a barrel by 03:13 GMT, while US West Texas Intermediate crude futures fell 71 cents, or 0.79 %, to $88.95, the lowest level since September 14 of this year.
The Federal Reserve, the US central bank, maintained interest rates yesterday and at the same time adhered to a tightening monetary policy, which means that there is an expected increase in interest rates before the end of the year.
Adherence to the tightening policy led to the dollar rising to its highest level since the beginning of last March, which put downward pressure on oil prices, as the strength of the dollar usually makes primary commodities such as oil more expensive for buyers than holders of other currencies.
Energy markets showed little reaction to the data issued by the US Energy Information Administration yesterday, Wednesday, which showed a decline in crude oil inventories last week, in line with expectations.
The data revealed a decline in inventories by 2.14 million barrels last week.
Source: National Iraqi News Agency