Both Brent and WTI traded lower, after a promising start due to increased demand.
Oil prices fell almost $1 a barrel on Friday after comments from central bank officials. USA indicated that the interest rates highs will last longer, which could curb demand from the world’s largest crude oil consumers.
Crude oil futures Brent closed at $82.79 a barrel, down $1.09, or 1.3%, while the West Texas Intermediate (WTI) fell $1, or 1.26%, to $78.26 a barrel. Thus, during the week, Brent recorded a loss of 0.2%, while WTI accumulated an advance of 0.2%.
The president of the Dallas Federal Reserve, Lorie Logan He said on Friday it was unclear whether monetary policy was tight enough to reduce inflation to the central bank’s 2% target. Higher interest rates typically slow economic activity and weaken demand for oil.
The president of the Atlanta Fed, Raphael Bostic, He also told Reuters he thought inflation was likely to slow under current monetary policy, allowing the central bank to start cutting rates in 2024, although perhaps only by a quarter of a percentage point and only until the last few months. of the year.
“The two authorities of the Fed certainly seemed to put a damper on the prospect of rate cuts,” said John Kilduff, partner at Again Capital LLC.
The strength of the dollar and the increase in inventories
Meanwhile, the dollar strengthened after comments from officials of the Federal Reserve, making commodities denominated in that currency more expensive for buyers using other currencies, and longer-term higher U.S. interest rates could also dampen demand.
Oil prices also faced pressure from rising fuel inventories in USA, approaching the normally robust summer driving season, said Jim Ritterbusch of Ritterbusch and Associates.
Source: Ambito
