Oil traded stable amid investor caution over Fed rates

Oil traded stable amid investor caution over Fed rates

The prices of Petroleum They operated with few changes this Monday, with minor advances in a trade muted by the festivities celebrated in United Kingdom and USAafter a bearish week characterized by the prospects for interest rates of the Federal Reserve (Fed) before a inflation that doesn’t give in.

The contract of Brent crude oil For July it gained 1 dollar, to 83.12 dollars a barrel, while that of August, more active, advanced 1.04 dollars, to 82.88 dollars. The futures of West Texas Intermediate (WTI) In the United States they added 93 cents, to $78.65.

Brent lost about 2% last week and WTI almost 3% after the minutes of the Federal Reserve show that some authorities would be willing to raise rates further if necessary to control stubbornly high inflation.

“Sentiment in the oil complex has been cautious as investors constantly recalibrate their expectations about the Fed’s monetary policy path,” said Vandana Hari of oil market analysis provider Vanda Insights.

The latest data from Western economies has modified rate cut expectations depending on geography. Thus, it is likely that the European Central Bank to make a cut in June, as investors prepare for higher rates in the United States, analysts at Bank of America.

The US personal consumption expenditure (PCE) index, due this week and considered the Fed’s preferred measure of inflation, will be in the spotlight for fresh signals on rate policy.

Attention will also focus on the next producer group meeting OPEC+, formed by the Organization of Petroleum Exporting Countries (OPEC) and allies such as Russia. The meeting will be held virtually on June 2.

Source: Ambito

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