Brent and WTI are trading unchanged. Investors are, however, paying attention to the signals that the Fed will give at the end of the month.
The prices of the Petroleum were trading little changed on Monday, following the announcement of Joe Biden that he will not seek a second presidential term in USAas investors await further signs of a possible interest rate cut by the Fed. Federal Reserve (Fed) in September.
The futures of the Brent crude oil were down 9 cents to $82.54 a barrel, and crude oil prices were down 9 cents to $82.54 a barrel. West Texas Intermediate in the United States (WTI) were down 19 cents at $79.94 by 09:33 GMT. Brent has been relatively stable over the past month, trading between $82 and $88 a barrel.
The Federal Reserve The Fed will review its monetary policy on the 30th and 31st of this month. Although investors expect it to keep rates unchanged, they expect it to give hints that there will be a cut at the September meeting.
The news that Biden decided on Sunday to drop his re-election bid was not a major factor for the oil marketsThe US president backed his vice president, Kamala Harrisas the candidate who should face the Republican Donald Trump in the November elections.
“We think the US president’s ability to influence his country’s oil production is probably overrated,” said Suvro Sarkar of the DBS Bankpointing out that production in USA hit record highs last year despite Biden administration measures to address climate change.
“In any case, a Trump presidency could influence greater oil demand in USAgiven his stance against the electric vehicles“, he added.
The other side of the coin of a production of Petroleum without restrictions in USA It could be lower prices, which could have the unintended effect of forcing marginal producers to suspend production, said Tony Sycamore, an analyst at IG.
Source: Ambito
