Brent and WTI futures fell as investors shrugged off Biden’s withdrawal from the US candidacy.
Oil prices fell for a second straight session on Monday to their lowest level in more than a month as investors shrugged off the decision by US President Donald Trump. Joe Bidento end his re-election bid and focused on rising inventories and signs of weak demand.
Crude oil futures Brent fell 23 cents, or 0.28%, to $82.40 a barrel, the lowest level since June 11. The futures contract West Texas Intermediate (WTI) of USA US crude oil for August delivery, due Monday, fell 35 cents, or 0.44%, to $79.78 a barrel, also a one-month low. WTI futures for September delivery fell 55 cents to $78.09.
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.
Biden ended his re-election campaign on Sunday and endorsed the vice president Kamala Harris as the Democrat who should face the Republican Donald Trump in the November elections.
Traders took Biden’s decision in stride while ignoring the escalation of tensions in middle Eastthe trading desk of US fuel distributor TACenergy wrote on Monday. Market participants were focused on a weak technical outlook, ample inventories and weak demand, they wrote.
While the oil market is visibly tight at the moment, it is expected to reach a balance in the fourth quarter of this year and a surplus in 2025, which will take Brent prices into the mid- to high-$70s next year, according to Morgan Stanley analysts.
In the Middle East, Israeli fighter jets attacked Houthi military targets near the port of Hodeidah on Saturday. Yemenkilling at least six people. The Houthis told media on Sunday that they will continue to attack Israel and will not respect any rules of engagement.
While, ChinaTop oil importer US Dollar surprised markets by cutting a benchmark short-term interest rate and benchmark lending rates to boost its economy, but the move failed to support oil prices.
Source: Ambito
