Oil prices fall amid possible decline in demand in China

Global oil prices fell on June 13 afternoon by more than 1% on fears of a reduction in demand for this type of crude in China, Report informs referring to the auction data.

The price of August futures for Brent crude fell 1.36% to $120.35 per barrel, and July futures for WTI fell 1.41% to $119.97.

Prices are falling amid new cases of coronavirus in China. Investors fear that the increase in cases could lead to the introduction of new restrictions on movement, which have only recently begun to be lifted. So, due to restrictions in China, which is the largest importer of oil, the demand for this type of raw material may decrease significantly.

In addition, the strengthening of the dollar has a negative impact on oil prices. The dollar index (the dollar exchange rate against a basket of currencies of six countries - the main trading partners of the US) has been growing for the fifth day in a row, since the middle of last week the indicator has grown by 2.35%. Now the index is growing by 0.58%, up to 104.7 points. Rising oil prices make commodities, including oil, less accessible when bought in another currency.