Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Crude Oil Lower; Stronger Dollar, Weak Sentiment Weigh

CommoditiesSep 20, 2021 09:37AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse -- Oil prices sold off sharply Monday, as rising risk aversion boosted the U.S. dollar ahead of this week's important Federal Reserve meeting.

By 9:45 AM ET (1345 GMT), U.S. crude futures were down 1.3% at $70.86 a barrel, while Brent futures were down 0.9% at $74.63 a barrel, falling for the second consecutive session.

U.S. Gasoline RBOB Futures were down 1.4% at $2.1415 a gallon.

Market sentiment has turned more risk averse this week, with equity markets sharply lower following worries about contagion from Chinese property developer Evergrande's debt problems.

As a result, the U.S. dollar, seen as a safe haven, climbed to a month-high, making commodities priced in the currency such as oil less attractive to investors.

Adding to the concerns is the upcoming two-day Fed policy meeting, concluding on Wednesday, which could see the central bank taking another step toward tapering its massive pandemic-era bond-buying program.

“A tapering announcement this week would likely put some downward pressure on oil and the broader commodities complex,” said analysts at ING, in a note.

While the focus has turned elsewhere, supply is increasing in the U.S., the largest consumer in the world. 

The country’s oil and gas rig count rose by nine to 512 in the week to Sept. 17, Baker Hughes said on Friday,  its highest since April 2020 and double the level from this time last year.

Additionally, only 23% of U.S. Gulf of Mexico crude output remained offline as of Friday, or 422,078 barrels per day, an improvement from the 28% seen on Thursday, more than two weeks after Hurricane Ida hit.

There was some potential good news for the energy markets Monday, with the Financial Times reporting that the United States is set to relax travel restrictions for passengers arriving from Europe and the U.K. if they are fully vaccinated. This should boost demand for seats, and in turn demand for aviation fuels as airlines cater to the increased demand with additional flights.


Crude Oil Lower; Stronger Dollar, Weak Sentiment Weigh

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Alan Rice
Alan Rice Sep 20, 2021 12:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
World oil glut : Day 36,101.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email