International oil prices are under pressure, MT4.MT5 is built

On Tuesday (July 19), international oil prices were under pressure. While oil prices were supported by a weaker U.S. dollar, the U.S. dollar index hit a fresh nearly two-week low of 106.666 on the day, making dollar-denominated oil cheaper for buyers holding other currencies. But Russia's pursuit of more non-Western currencies as a means of payment for international trade may add to the West's frustration.

 

At 16:34 Beijing time, NYMEX crude oil futures fell 0.49% to US$98.94 per barrel; ICE Brent crude oil futures fell 0.50% to US$105.66 per barrel.

 

 

Warren Patterson, head of commodity strategy at ING, said in a note that markets have had time to digest President Biden’s trip to the Middle East, concluding that OPEC+ is unlikely to plan to increase production more aggressively than before in the near term, but the dollar The weakness provided support to broader commodity prices.

 

U.S. President Joe Biden visited Saudi Arabia, the world's top oil exporter, last week, hoping to reach a deal on boosting oil production to curb fuel prices. But Saudi Arabia, the de facto leader of OPEC, has not explicitly pledged to increase production.

 

OANDA senior market analyst Jeffrey Halley said in a note that the underlying supply-demand imbalance is business as usual, "Oil prices may have peaked, but it certainly doesn't look like they're going to drop significantly from here unless the Organization of the Petroleum Exporting Countries and its allies (OPEC+) It's a huge surprise for everyone."

 

Sources said Russia was looking to charge the UAE currency dirhams for exporting oil to Indian customers. At least two Indian refineries have already settled some of the payments in dirhams, with more to follow in the coming days.

 

The move could exacerbate frustration among some in the West. They have said privately that the UAE's position is untenable. The UAE seeks to maintain so-called neutrality and has not imposed sanctions on Moscow.

 

Authorities in Moscow are ditching the use of the dollar to insulate themselves from Western sanctions. Russian Foreign Minister Sergei Lavrov said in April that Russia wants to increase the use of non-Western currencies in trade with countries such as India.