Brent price has collapsed to a minimum since May

Oil quotes fall on Tuesday amid concern of global demand for fuel and strengthen the dollar, writes Interfax.

By 18:05 Moscow time, September Brent futures were cheaper on $ 8.64 (7.61%) on the ICE FUTURES exchange to $ 104.86 per barrel. This is the minimum level since mid -May.

August futures on WTI by this time were cheaper on the New York Model Exchange (NYMEX) for $ 7.36 (6.79%) – up to $ 101.07 per barrel.

The negative factor for the oil market was the fact that the consolidated index of procurement managers (PMI) of 19 eurozone countries, calculated by Markit Economics, dropped to 52 points from 54.8 months earlier. The activity indicator in the field of the services of the currency block last month decreased to 53 points from May 56.1 points.

The dollar index showing the dynamics of the dollar relative to the six main world currencies, during the trading, took off by 1.5%. Strengthening the dollar is a negative factor for prices for raw materials, since their cost increases for holders of other currencies.

“Capital flows into US dollars, which exerts pressure on raw materials,” said the senior strategist of Sia Wealth Management Colin Cheshinsky.

He added that it is quite strange to see such a sharp collapse in oil prices, taking into account the strike in Norway and the prospects for reducing Russian oil supplies. This indicates that market participants are more afraid of a world recession than short -term problems with a proposal.