Price action
Brent crude futures fell six cents to $90.86 a barrel by 0345 GMT, while US West Texas Intermediate crude fell five cents to $89.18 a barrel.
Data yesterday evening, Tuesday, showed that job opportunities in the United States increased by the largest amount in more than two years, which led to a sharp rise in US bond yields.
In addition to fears that interest rates will remain high for some time, oil has been under pressure due to fears that the strength of the dollar will weaken demand, because it makes crude more expensive for holders of other currencies.
“The strength of the labor market provides more room for the Fed to keep interest rates higher for longer,” said Yip Jun Rong, a market analyst at IG.
The OPEC+ group, which includes the Organization of the Petroleum Exporting Countries and its allies, is expected to keep production policy unchanged when it meets on Wednesday, after Saudi Arabia and Russia, which are members of the group, extended their production cuts until the end of the year.
A survey conducted by Reuters showed that Saudi Arabia is expected to raise the official selling price of Arab Light crude for November to Asia, for the fifth month in a row.
“The recent change in the trend of oil prices may be a reason for the group (OPEC+) to keep the supply reduction agreement unchanged at today’s meeting,” Brian Martin and Daniel Haynes, analysts at ANZ Bank, said in a note.
At the same time, an Iraqi oil official told Reuters that talks to resume Iraqi oil exports from a pipeline passing through Turkey are still ongoing, one day after Turkey announced that operations would begin again this week after a nearly six-month hiatus.
Interfax news agency quoted Russian Deputy Prime Minister Alexander Novak as saying that Russia will not set a time frame for the fuel export ban it imposed last month, which will remain in place as long as necessary to stabilize prices and address shortages in the domestic market.
Investors are also closely monitoring supply and demand in the United States. Sector data showed a decline in crude inventories by about 4.2 million barrels in the week ending September 29, according to figures from the American Petroleum Institute yesterday, Tuesday.
US government data on inventories is scheduled to be released on Wednesday. The average forecast of eight analysts polled by Reuters indicates a decline in crude inventories of about 500,000 barrels in the week ending September 29.
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