The prices of Petroleum fell after the data inflation US and high interest rates that could 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 83 cents, or 1%, to $82.88 a barrel. American crude oil West Texas Intermediate (WTI) It fell 54 cents, or 0.7%, to $79.26 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.
Meanwhile, the most active contract for July WTI fell 64 cents, to $78.66. The increase of costs of loans ties up funds, dealing a blow to economic growth and demand of crude oil, in addition to putting pressure on consumer demand at the pumps.
“The market is very focused on gasoline demand in USA because there are signs that consumers are cutting back (consumption) due to inflation. Unless that changes, the market suggests things could be a little bleak,” he said. Phil Flynn, Price Futures Group analyst.
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 OPEC+. 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
