The depreciation of the dollar made oil more expensive

According to the report of the International Economic Group of Fars News Agency, quoted by Reuters, the global energy market expects China to apply economic stimuli, and following good demand in other Asian countries and the reduction of US oil reserves, oil prices increased in today’s global markets.

Brent oil was up 74 cents at $84.92 per barrel, and US crude was up 78 cents at $80.52 per barrel.

China’s economic statistics showed that consumer inflation in this country recorded the lowest rate since September 2021 in March. This statistic shows the continuation of weak demand in this country in the midst of uneven economic recovery.

CMC Markets Analyst Tina Teng said: “China’s consumer index came in lower than expected in March, which is likely to encourage the Chinese government to implement more economic stimulus.”

On the other hand, the price of oil increased due to the drop in the value of the dollar due to the possibility of stopping the cycle of interest rate hikes by the American central bank. The lower the value of the dollar, the cheaper the price of oil for the owners of other currencies.

“With more central banks halting interest rate hikes, such as the Reserve Bank of Australia, the Bank of Korea, expectations for the Fed to abandon its tightening policy have strengthened,” Teng added.

Signs of stronger demand in India, the world’s third-largest oil consumer, were also factors in the rise in oil prices in March.

Fuel consumption in India rose 5% year-on-year last month to a record 4.83 million barrels per day.

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