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Oil stable due to solid demand from the United States

Oil stable due to solid demand from the United States

Brent futures are heading for a decline of more than 5% monthly and WTI futures are heading for a decline of 3%.

Image: Freepik

The prices of Petroleum were trading broadly stable on Wednesday, as inventory figures showed strong oil demand in USAcountering the pressure exerted by the possibility of higher interest rates from the Federal Reserve (Fed) for longer.

Pending data on US crude stockpiles due later in the day, Brent crude oil futures were down 17 cents, or 0.2%, at $83.43 a barrel at 0921 GMT, while those in the West Texas Intermediate in the United States (WTI) fell 12 cents, or 0.15%, to $79.11.

Brent futures are headed for a decline of more than 5% compared to last month, while WTI futures are set to fall more than 3%.

In Uruguaythe behavior of the oil price last month opened to the Ursea recommend, in your report Import Price Parity (PPI)a decrease in the values ​​of the fuels for sale to the public. Thus, gasoline could reduce its value by around 2.6%, while diesel could drop by 6.47% and supergas should also fall by up to 5.43%.

“The general risk-averse environment has translated into some downward pressure on oil prices.” Petroleumwhich negate the larger-than-expected drawdown in US oil inventories, according to the latest API data,” said Yeap Jun Rong, market strategist at I.G..

U.S. crude inventories fell by 6.49 million barrels last week, compared to analysts’ forecasts for a reduction of 1.9 million, according to market sources citing the figures. from the American Petroleum Institute published on Wednesday. Data from the US Energy Information Administration (EIA) will be released later in the day.

However, global oil inventories increased throughout April due to weak demand for fuelwhich could reinforce the position of the producers of the OPEC+ -which includes the Organization of Petroleum Exporting Countries (OPEC) and allies like Russia– to maintain supply cuts when they meet on June 2.

Crude oil markets have been pressured by expectations that the Federal Reserve keep rates elevated for longer and Brent hit its lowest level in more than three months on May 23.

Source: Ambito

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