Oil price slides as dollar strengthens

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Oil price slides as dollar strengthens
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Covid-19 flare-up in China raises concerns of global demand slowing

Singapore — Oil prices slid on Tuesday, extending losses of nearly 2% in the previous session, as a stronger US dollar and a flare-up in Covid-19 cases in China raised concerns of slowing global demand.

The dollar gained on Tuesday, with worries about rising interest rates and geopolitical tensions unsettling investors. A strong greenback reduces demand for oil by making it more expensive for buyers using other currencies. Covid-19 cases in the world’s second-largest oil consumer rose to their highest since August. Its services activity in September contracted for the first time in four months, as pandemic restrictions weighed. Thousands of cases caused by Omicron sub-variants have been reported in Inner Mongolia since the start of October, turning the region into the country’s latest Covid-19 epicentre.

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BDliveSA /  🏆 12. in ZA

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