Oil prices interrupted their rebound on Friday, which started two sessions earlier, the market remained focused on the poor global growth prospects, while gas prices in Europe remained high after a new record closing the previous day.
The price of a barrel of North Sea Brent crude for October delivery was down 1.31% to $95.32 at around 09:35 GMT (11:35 a.m. CET) and US West Texas Intermediate (WTI) for September delivery was down 1.27% to $89.35.
Dutch TTF, the benchmark for natural gas in Europe, ended Thursday at 241.00 euros per megawatt-hour (MWh), an all-time closing record, and continued its rise by gaining 1.61% to 245.41 euros Friday.
In addition to the reduced flow from Russia, Europe is currently experiencing high demand for gas and reduced production due to the ongoing heat wave.
Less dependent on the European market, oil prices were floundering. Volumes are particularly small this summer, which favors increased price volatility and pushes the analyst to give little credence to the rebound that began Wednesday after a surprise drop in US stocks.
“A global recession that would destroy demand remains the main concern, with less than encouraging data coming out of the Eurozone and China,” he added.
On Friday, the strength of the dollar, boosted by the prospect of tighter monetary policy in the US, was also weighing on oil.
As the US dollar is the reference currency for the oil market, its rise weighs on the purchasing power of investors who use other currencies.
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