The prices of Petroleum fell in early Asian trading on Tuesday, as investors anticipated the persistent inflation US and high interest rates would depress industrial and consumer demand; while, in Middle East There are expectations regarding the consequences that the death of the president of Iran would have on the price of crude oil.
Crude oil futures Brent They fell 44 cents, or 0.53%, to $83.27 a barrel in the early morning. American crude oil West Texas Intermediate (WTI) It fell 51 cents, or 0.64%, to $79.29 a barrel. Both references fell less than 1% on Monday, after those responsible for the Federal Reserve of USA said they expected more signs of a slowdown inflation before considering interest rate cuts.
“Fear of weaker demand sparked selling as prospects of a cut in U.S. interest rates Federal Reserve “were moving away,” said Fujitomi Securities analyst Toshitaka Tazawa. Meanwhile, Fed Vice Chairman Philip Jefferson said Monday that it was too early to know whether the slowdown in inflation is “lasting,” while the vice president Michael Barr stated that restrictive monetary policy needs more time.
The president of the Fed from Atlanta, Raphael Bosticsaid the central bank “will take some time” to be confident that the slowdown in price growth is sustainable, while lower interest rates reduce borrowing costs, freeing up funds that could boost economic growth and demand of Petroleum.
Market appears stable, despite instability in Iran
Meanwhile, the market seems little affected by political uncertainty in two large oil-producing countries. Petroleum. “Although there has been a move higher on uncertainty in Iran, prices have since pared some gains as investors lean towards the policy status quo for now and any broader regional conflict remains out of the question. the table,” IG market strategist Yeap Jun Rong said in an email to Reuters.
The Iranian presidentEbrahim Raisi, hardliner and potential successor to Supreme Leader Ayatollah Ali Khamenei, died in a helicopter crash, while the crown prince of Saudi Arabia, Mohamed Bin Salman, postponed a trip to Japan for the health of his father, the king.
“The death of the Iranian president and the health problem of the Saudi king do not seem to be affecting the market much, as it is not clear whether they will have an immediate impact on energy policy,” said Fujitomi’s Tazawa.
Meeting at OPEC+
Investors focus on the supply of the Organization of Petroleum Exporting Countries and its subsidiaries, known collectively as OQEP+. They are scheduled to meet on June 1 to set production policy, including the possibility of extending voluntary cuts of 2.2 million barrels a day by some members.
“Prices continue to await a catalyst for a breakout of the current range, with an eye on any geopolitical developments, along with this week’s oil inventory data,” Yeap said.
The OPEC+ could extend some voluntary production cuts if demand does not pick up, people with knowledge of the matter previously told Reuters.
Source: Ambito
