Negotiations between Israel and Hamas fail to reach an agreement. Mexico announced that it will withdraw more crude oil from the world market.
The prices of Petroleum ended lower this Tuesday in the absence of major news in Middle East and following an upward revision of global production estimates by the government of USA for this year.
The price of a barrel of Brent of the North Sea for delivery in June fell 1.06% to $89.42, while a barrel of West Texas Intermediate (WTI) for May it lost 1.39% to $85.23.
For Carsten Fritsch, of Commerzbank, the withdrawal of Israeli troops from southern Gaza as well as a new truce proposal under study by Hamas, “they reduced the risk premium” that made black gold prices rise in recent days. “The escalation has stopped” for now in Middle East, observed Bart Melek of TD Securities.
The United States data
Prices were also limited by the monthly report of the US Energy Information Agency (EIA), which revised upwards its energy production estimates. raw in the world for the last nine months of 2024.
In addition, the EIA increased its consumption forecasts, but globally it expects a market in balance in the third quarter, and supply greater than demand in the fourth.
Analysts expect the EIA to announce on Wednesday in its weekly report a new decline of 2.3 million barrels in gasoline reserves last week, according to the consensus compiled by the Bloomberg agency.
Geopolitical factors
Like the day before, oil was trading lower today, influenced, according to analysts, by geopolitical factors such as the withdrawal of Israeli troops from the south of Loop and the best prospects for a possible truce in that Palestinian territory.
Last week the OPEC+, leadered by Saudi Arabia and Russia, decided to leave the current offer of Petroleum of the cartel. The group also urged its member countries to comply with current production cuts.
Source: Ambito
