Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Netanyahu: If Lebanese Army takes steps to disarm Hezbollah, Israel will engage in reciprocal measures, including phased reduction of Israeli military presence in Lebanon
Al Mayadeen's correspondent: Photojournalist Houssam Al-Masri martyred, reporters Hatem Omar, Mohammad Ashraf Salameh injured in Israeli strike on Nasser Medical Complex.
Israeli media: Intense US efforts are being made to resolve differences, such as the issue of the Israeli presence on Mount Hermon and in southern Syria
Israeli media: The security agreement means amending the disengagement agreement, which will also address the Druze issue
Israeli media: Attempts to reach a security agreement between 'Israel' and Syria were among the topics discussed at the Paris meeting
Israeli media: Sheikh Muwaffaq Tarif rejected a US proposal to join the recent tripartite meeting between Tom Barrack, al-Shaibani, and Dermer
Saba News Agency: Two martyred, five injured in a preliminary toll of the Israeli aggression on the Yemeni Oil Company station on Al-Sitteen Street in Sanaa
Senior Yemeni military source to Al Mayadeen: We observed a state of confusion among the enemy's aircraft squadron after Yemeni air defenses intercepted the attack
Senior Yemeni military source to Al Mayadeen: The Yemeni air defense forces succeeded in neutralizing a squadron of enemy aircraft and prevented airstrikes on some governorates
Senior Yemeni military source to Al Mayadeen: Our air defenses and missile forces forced a formation of enemy aircraft to flee the airspace

Oil overshadows dollar in light of market turbulence

  • By Al Mayadeen English
  • Source: Agencies
  • 26 May 2023 17:18
6 Min Read

The United States dollar decreases in value amid price hikes for oil, encouraging the trading of oil among non-USD holders as the dollar watches from the sidelines.

  • x
  • Taps are photographed at a gas station in Frankfurt, Germany, on October 5, 2022 (AP)
    Taps are photographed at a gas station in Frankfurt, Germany, on October 5, 2022 (AP)

Oil prices saw an uptick Friday as the US dollar fell in daily trading, making crude oil cheaper for non-USD-using investors, and thus boosting the oil trade.

The hike in oil prices comes amid uncertainties about the next move to be taken by OPEC+ after ministers raised market uncertainties ahead of the upcoming meeting for the oil cartel.

International benchmark Brent crude traded at $76.40 per barrel at 06:56 am GMT, a 0.18% hike from the closing price of $76.26 a barrel in the last trading session it had.

Meanwhile, with a marginally higher increase, the American benchmark West Texas Intermediate rose 0.35% to sell at $72.08 after trading at $71.83 per barrel during the last session.

The dollar's loss of value is the main catalyzer of the rise of oil prices, as the USD index that measures the USD's value in comparison to various other currencies such as the British pound and Japanese yen declined 0.16% on Friday.

There are still risks for the USD, as credit rating agency Fitch on Wednesday placed the US' AAA rating on watch for a possible downgrade amid ongoing discussions on the country's debt limit.

However, Fitch underlined that it had faith that an agreement could be struck soon, noting that the risk the government would default on some commitments is on the rise.

Negotiations with the White House over raising the US debt limit are still stuck in light of diverging points of view on future spending plans, House Speaker Kevin McCarthy said.

As Republicans and Democrats bicker about the future of the country's spending, commercial crude oil inventories in the US were on the decrease, with the inventories losing 12.5 million barrels, sending the reservoirs down to 455.2 million barrels. The drop was significantly higher than what the American Petroleum Institute expected, as it was only projected to decrease by 6.7 million barrels.

The market is still volatile pending a decision from the OPEC+ meeting as investor concerns increased due to conflicting statements made by Russia and Saudi Arabia, the organization's leading oil producers.

Related News

Why Europe's regulatory power is no longer enough: FT

Valery Zaluzhny: From Ukraine top general to presidential prospect

It is expected that the international cartel will decide on reducing its output once more in the coming week after Saudi Energy Minister Abdulaziz bin Salman warned oil traders to tread carefully.

The conflicting statements start with Russian Deputy Prime Minister Alexander Novak hinting that OPEC+'s present production strategy will continue, declaring Thursday that production will continue when he declared that energy prices were approaching "economically justified" levels.

According to Novak, the price of Brent crude oil may rise over $80 per barrel by the end of the year, especially in light of an increase in demand over the summer, as well as OPEC+ output reductions.

"But I repeat once again: we do not have the task of inflating prices; there is the task of balancing in order to ensure the interests of both producers and consumers," the Russian top official stressed.

The US is growing frustrated with OPEC, and it was reported last week that the United States House of Representatives Judiciary Committee was considering a bill to put pressure on the OPEC oil producers' group to stop cutting output by revoking the sovereign immunity that had protected OPEC+ members and their national oil companies from price collusion lawsuits, James Durso of Oil Price said. The measure was previously approved by the committee in 2018, 2019, and 2021.

The OPEC Basket Price has been hovering around the mid-$70s, which is not historically high, though American politicians want to talk down gasoline prices before the summer driving season begins. (Saudi Arabia needs a price of $80.90 USD to balance its budget and finance economic diversification.)

If Americans are not outraged about gas prices, that could mean the US is reacting to a rapprochement between Iran and Saudi Arabia (mediated by China); Egypt and Iran beginning to normalize relations (mediated by Iraq); Syria rejoining the Arab League; the UAE and Iran in talks to strengthen ties; and the possibility of energy cooperation between Iraq and Iran.

In addition to a punishment for Arab OPEC members, the bill may be a message to others, for repairing relations with Iran and Syria under the guise of safeguarding American consumers. It also avoids a mention of the Biden administration's strategy of limiting oil and gas output, despite the fact that the government has recently permitted limited drilling on federal lands.

Meanwhile, as the US and its allies seeks to strangle Russia, the top oil producer in OPEC+, the latter stressed that it could maintain production capabilities at 10 to 11 million bpd, but the country will not expand its production to meet global demand amid sanctions on Moscow

Ten rounds of sanctions against various Russian industries have failed to strangle the Russian economy, which has managed to stay afloat. Russian productivity is thriving in a range of economic sectors, including the production of microchips, trucks, banknotes, chemicals, and luxury bags.

The Group of Seven wealthy nations and Australia have set price caps on Russian petroleum products and crude oil at $60 per barrel in coordination with the European Union.

In response, Russian President Vladimir Putin signed a decree to ban the sales of crude oil to countries abiding by the Western-led price cap on Russian oil. It also announced a production cut of 500,000 barrels per day while its allies in the OPEC+ group of oil producers, including Saudi Arabia, also agreed to slash output.

  • United States
  • OPEC
  • Russia
  • USD
  • US dollar
  • OPEC+
  • Crude oil
  • European Union

Most Read

Tom Artiom Alexandrovich, executive director of the defense division of the Israeli National Cyber Directorate, undated (Social media)

Israeli-born US prosecutor drops Israeli officer child sex crime

  • Politics
  • 19 Aug 2025
Displaced Palestinians walk through a makeshift camp along the beach in Gaza City, Sunday, Aug. 10, 2025 (AP)

Hamas, other factions accept Egypt-Qatar ceasefire proposal: Exclusive

  • Politics
  • 18 Aug 2025
Israeli soldiers stand on the top of armoured vehicles parked on an area near the Israeli-Gaza border, as seen from southern Israel, Wednesday, Aug. 20, 2025 (AP)

Palestinian fighters target Israeli soldiers, vehicles in Gaza

  • Politics
  • 21 Aug 2025
Almost instantly after the Helsinki Accords were signed, organisations sprouted to document purported violations, whose findings were fed to overseas embassies for international amplification. (Al Mayadeen English; Illustrated by Zeinab el-Hajj)

How ‘Human Rights’ became a Western weapon

  • Opinion
  • 23 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Israeli Prime Minister Benjamin Netanyahu speaks during a press conference at the Prime minister's office in al-Quds, Occupied Palestine, Sunday, Aug. 10, 2025 (AP)
Politics

Netanyahu deliberately derailing truce with Gaza occupation: Hamas

Irish President Michael Higgins arrives to deliver his speech during a 42nd World Food Day celebration at FAO headquarters in Rome, on Oct. 16, 2023. (AP Photo/Alessandra Tarantino)
Politics

Irish president renews call for UN military intervention in Gaza

US Ambassador to Turkey and Special Envoy to Syria Tom Barrack speaks during an interview with The Associated Press at the US Embassy in Aukar, northern suburb of Beirut, Lebanon, Monday, July 21, 2025 (AP)
Politics

US envoy, Netanyahu discuss restraining attacks on Lebanon, withdrawal

Smoke billows following Israeli airstrikes in multiple areas in Sanaa, Yemen, Sunday, Aug. 24, 2025 (AP)
Politics

Ansar Allah vow sustained Gaza support despite Israeli strikes

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS