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Dollar slips after Middle East risks and oil flow decline

Kpler data cited by Action Forex showed Strait of Hormuz oil shipments averaging 10.5 million bpd in the seven days to 10 October, down 38% from 17.1 million bpd before the war.

Reported · Written up by our desk · Major Pairs

The US dollar hit a new high on Monday, but it pulled back slightly as investors balanced Middle East risk against softer oil-market signals, according to Action Forex. Action Forex said the dollar gained after a dip in oil prices tied to a US-Russia diesel fuel deal was outweighed by escalating tensions in the Middle East. The report added that investors were also waiting on inflation data and a speech by Kevin Warsh, which led some to close out positions, contributing to the USD index retreat.

For oil flows, Action Forex cited Kpler data showing shipments through the Strait of Hormuz fell sharply in October. It said average shipments were 10.5 million bpd in the seven days leading up to 10 October, a 38% drop versus a pre-war level of 17.1 million bpd.

Reuters figures mentioned by Action Forex put September average throughput at 18.11 million bpd, versus 18.22 million bpd over the eight weeks leading up to the Middle East conflict. The outlet said exporters were alarmed by renewed attacks on tankers and facilities in Saudi Arabia, and argued the Washington-Moscow diesel agreement would cover only nine days’ worth of US demand.

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