US crude oil futures West Texas Intermediate (WTI) gained 4 cents, or 0.2%, to touch $85.30..
Both of them are headed for their third straight weekly loss, affected in part by the strength of the dollar, which makes oil more expensive for buyers who use other currencies. So far in the third quarter, both Brent and WTI are down 20%, the worst quarterly percentage declines since the start of the coronavirus pandemic in the first three months of 2020.
Investors expect an increase in interest rates in the United States after the inflation data was known, which attracts interest towards bonds tied to the Treasury and the dollar. It is added that the International Energy Agency projected a drop in oil demand in the fourth quarter due to the lower dynamism of the Chinese economy.
The International Monetary Fund and the World Bank They also warned of the slowdown in the recovery of activity and the need to be persistent in the fight against inflation, which supports the maintenance of high interest rates.
Added to this is the drop in expectations of the return of Iranian oil to the market due to the cooling down of revising the nuclear agreement and that the OPEC will be in favor of the proposal put forward yesterday by the president of Venezuela, Nicolás Maduro, to support the price of a barrel at u$s100. OPEC closed the price of its crude oil basket on Thursday at US$97.30.
In addition the german government assumed this Friday the control of the operations in its territory of the Russian company Rosneft, which has refineries in the country. The argument focuses on “securing the national energy supply”. These plants represent 12% of the country’s oil refining capacity. The decision is part of the Russian threat of supply cuts if the G7 insists on setting maximum prices for this country’s oil.
Source: Ambito
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