After a choppy start, the market trended lower as consensus grew on a tightening of Fed financial conditions, starting from the September meeting.
For his part, the comments made on Monday by the Saudi Energy Minister, Prince Abdulaziz bin Salman, on the disconnection between the futures and physical markets, in which he pointed out the possibility that OPEC + cut its production, have contributed to push oil prices to three-week highs.
“The suggestion that price was not in line with fundamentals and that OPEC+ might cut output has clearly had the desired effect,” said Craig Erlam, an analyst at Oanda.
“It may also make it difficult to break back below $90 in the short term, unless a nuclear deal is reached and OPEC+’s appetite for cuts is tested,” he added.
Offer
Talks between the European Union, the United States and Iran to revive the 2015 nuclear deal continue, with Tehran saying it had received a response from Washington to the “final” text from Brussels to revive the deal.
Falling US crude and product stockpiles also added to upward pressure on prices. Oil inventories fell by 3.3 million barrels in the week ended Aug. 19 to 421.7 million barrels, beating analysts’ expectations in a Reuters poll for a drop of 933,000 barrels.
The upside impact was offset by a lower-than-expected draw in gasoline inventories, reflecting tepid demand.
US gasoline stocks fell by 27,000 barrels in the week to 215.6 million barrels, versus earlier expectations for a 1.5 million-barrel drop.
Source: Ambito
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