Brent and WTI crude oil fell after a volatile session due to downbeat economic news in Germany and North America.
Oil prices fell this Monday in a volatile session as some pessimistic economic news from USA and Germany countered bullish support from a dollar weaker and forecasts of increased demand for heating energy due to a winter storm.
After rising for five days in a row, US futures Brent fell 21 cents, or 0.3%, to close at $76.30 a barrel, while U.S. crude West Texas Intermediate (WTI) fell 40 cents, or 0.5%, to close at $73.56. Despite those declines, both benchmark crude oils remained in technically overbought territory for the third consecutive day, Reuters reported.
Brent crude was supported by colder than normal weather in northwest Europe and USAa rebound in natural gas prices and higher refining profit margins, the analyst said SEB Bjarne Schieldrop.
However, dollar strength is also on investors’ radar, wrote senior market analyst at Philip NovaPriyanka Sachdeva, in a report on Monday. The greenback held near a two-year high on Monday, making it more expensive to buy commodities priced in dollars, such as oil.
Investors are also awaiting economic news for more clues on energy consumption and the outlook for the economy. United States Federal Reserve (Fed) on interest rates. Minutes from the latest Federal Reserve meeting will be released on Wednesday and the December payrolls report is scheduled for Friday.
Meanwhile, Saudi Aramcothe largest exporter of oil in the world, has raised crude oil prices in February for buyers of Asiathe first increase in three months. An increase in these prices usually indicates firmer demand expectations. On the supply side, it is quite possible that tougher Western sanctions will be imposed on Iranian and Russian oil shipments.
The administration of Joe Biden plans to impose more sanctions on Russia for its war against Ukraine, targeting its oil revenues with actions against the shipping of Russian crude, two sources with knowledge of the matter said on Sunday.
Goldman Sachs expects Iranian oil production and exports to fall in the second quarter as a result of expected policy changes and stricter sanctions from the incoming US president, donald trump.
The production of the producer of the OPEC could fall by 300,000 barrels per day (bpd) to 3.25 million bpd in the second quarter, the bank said.
Source: Ambito
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