Oil fell after US economic data

Oil fell after US economic data
Oil fell after US economic data

Crude oil fell close to US$1, while forecasts point to a value close to US$80 for Brent, due to the confluence of greater geopolitical risk and bullish fundamentals.

Photo: Reuters

The oil prices fell on Tuesday as investors await the US inflation data this week, after advancing the day before due to the escalation of geopolitical tensions and hopes of an improvement in demand this summer.

The futures of Brent for August they subtracted 1 dollar, to 85.01 dollars per barrel, while those of the West Texas Intermediate (WTI) in USA They lost 80 cents, to $80.83. Both benchmarks rose nearly 3% last week, chaining two consecutive weeks of growth.

The American consumer confidence decreased in June and, although households remained optimistic about the labor market and expected the inflation moderate over the next year, concerns about a weakening economy could mean reduced demand for fuel.

Eyes on US demand

The oil and fuel stocks have decreased and gasoline demand increases as the United States, the world’s largest oil consumer, enters its peak summer consumption period.

According to a preliminary Reuters poll, crude oil reserves in the United States they were reduced by 3 million barrels in the week to June 21. Gasoline stocks would also have decreased, while those of distillates probably increased.

“Brent prices could reach $80 in the short term, driven by the confluence of an increase in geopolitical risk and bullish fundamentals, which would exacerbate the market decline,” he explained to the Reuters agency. Claudio Galimberti, analyst of Rystad Energy.

Meanwhile, the personal consumption expenditure index, the nation’s preferred measure of inflation, will be released on Friday. Federal Reserve (Fed)which will give investors guidance on when interest rates might start to fall.

On the other hand, the Petroleum gained some support from the continued Ukrainian attacks on Russian oil infrastructure. On June 21, Ukrainian drones attacked four refineries, including Ilsky, one of the main fuel producers in the south of Russia.

Source: Ambito

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