Oil Futures Down on Worries Over Euro

Continuing evidence of weak energy demand and worries over economic stability within the Euro Zone and even the future of the euro itself, has pushed oil below $80 a barrel for the first time in six weeks. Investors are also turning back to the dollar as a safe haven which makes oil even more expensive for investors holding other currencies which must be converted to USD.

“The dollar is up as risk appetite has been dampened and prices are adjusting to more realistic levels as earlier this week prices were not backed up by fundamentals,” said Carsten Fritsch, oil analyst at Commerzbank in Frankfurt.

“More proof of weak demand came yesterday with U.S. data showing crude and products stocks rose.”

Source: Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.