Oil dips ahead of central bank decisions ‎

Oil prices fell today, Monday, as investors await more interest rate hikes from the US and European central banks, while lack of supply and hopes for Chinese stimulus kept Brent crude at $80 a barrel.

By 0045 GMT, Brent crude futures were down 41 cents, or 0.5 percent, at $80.66 a barrel. West Texas Intermediate crude futures fell 37 cents, or 0.5 percent, to $76.70 a barrel.

According to “Reuters”, the two crude oil rose 1.5 percent and 2.2 percent, respectively, in the past week, in the fourth consecutive week of gains, with the expectation of a decrease in supply in the wake of the OPEC + group cuts. Fighting also escalated last week in Ukraine after Russia withdrew from the agreement to transport grain across the Black Sea

Investors are taking into account a quarter-point rate hike in the US Central Bank and the European Central Bank this week, so the focus will be on the statements of Federal Reserve Chairman (US Central Bank) Jerome Powell and European Central Bank President Christine Lagarde regarding raising interest in the future.

Market parties are also anticipating that China will implement stimulus measures to support its faltering economy, which will likely revive oil demand in the world’s second largest oil consumer.

With regard to supplies, UAE Energy Minister Suhail Al Mazrouei said on Friday that OPEC + moves to support the oil market are sufficient at the present time, adding that the group is ready to take more steps when necessary.