May 30, 2024

The Catholic Transcript

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Oil closes with expectations of US oil release

Future contracts Petroleum Closed this Friday (12) fall. Investors continue to absorb the effects of the strong US inflation. Joe Biden’s government is also expected to issue oil shares to curb recent price rises.

WTI crude for December fell 0.98% ($ 0.80) to $ 80.79 per barrel on the New York Mercantile Exchange (Nymex), while Brent crude for January fell 0.84% ​​(US $ 0.70) to $ 82.17 per barrel for intercontinental (ICE) markets. By weekly comparison, the WTI deal was down 0.59% and the Brent deal was down 0.69%.

“This week has been a good reminder for the oil markets that prices are affected not only by supply and demand trajectory, but also by monetary policy forecasts and forms of government intervention,” says Louis Dixon of Rystad Energy. For example, if there are new locks by Govit-19, the analyst points out that there are many risks in perspective. The expected positive aspect is that severe winters and heavy reliance on oil products will keep commodity prices low.

Commerzbank, in turn, marks the third week of oil losses. The restrictions for analysts are speculation about the release of substantially stable dollar and strategic oil reserves in the United States. However, in the short term, the oil market should remain tight, as shown in the monthly report of the Organization of the Petroleum Exporting Countries (OPEC) released yesterday.

According to the BBH, the matter is being investigated by a White House task force. “Strategic Petroleum Reserve (SPR) movements are often symbolic, but it is clear that high inflation poses a political risk to the Biden government, less than a year before the midterm elections,” he says.

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