Dollar Soars As War Crisis Intensifies

Dollar Soars As War Crisis Intensifies

Dollar Soars As War Crisis Intensifies

As fears of a Russian invasion of Ukraine mounted, the dollar rose, while the euro fell, increasing demand for safe-haven currencies.

The US Dollar Index, which measures the dollar’s value against a basket of other currencies, was up 0.41 percent at 96.580.

Oil prices plummeted on Thursday following news that the US was considering unleashing up to 180 million barrels from its Proven Oil Reserve, the largest release in the reserve’s almost 50-year history.

Brent crude futures for May have dropped by 4.3 percent per barrel. On Thursday, the May contract expires, and the most actively traded futures were down $5.08 after dropping more than $6 earlier.

President of the United States, Joe Biden, will speak later on Thursday about his administration’s efforts to lower fuel costs, which have reached record highs since Russia’s invasion of Ukraine.

A drip discharge of 1 million barrels of oil is scheduled over the next six months.

It’s a sign that the Ukraine crisis, which has stretched oil supplies, isn’t going to be settled anytime soon.

However, this would just be a release of oil reserves, not a long-term source of supplies. As a result, such a discharge would not close the supply deficit that exists.

Western financial sanctions imposed in reaction to Moscow’s invasion of Ukraine have harmed Moscow’s crude oil and oil product exports.

The OPEC+ group, which includes Russia, will meet and is expected to keep its output target for May. Major Russian oil refiners have told the Energy Ministry that they aim to restrict refinery operations considerably further in the coming weeks due to overstocking following a sharp drop in European purchases.

Additional refinery cuts will be applied in addition to planned maintenance shutdowns. Russian oil-based sales have been under pressure since early March, as buyers flee the market.

Russia’s idle primary oil refining capacity nearly doubled from a prior estimate in March, hitting millions of tonnes.

As peace talks between Ukraine and Russia stalled, oil prices rose by roughly 3%.

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