Oil recovered much of what was lost the day before due to the impact of the climatic phenomenon on the US Gulf coast, and put aside the recurring fears of recession that have weighed on its value in recent days.
“Oil is currently under the influence of financial forces,” he said. Tamas Varga, from the PVM oil corridor in dialogue with Reuters. “Meanwhile, relief spikes, like this morning’s from Hurricane Ian in the US Gulf, are considered temporary events.”
The expectation of supply cuts by decision of the OPEC and the hurricane pushed up oil prices, which changed the trend shown by the strengthening of the dollar, which had reached its maximum in 20 years.
The Crude soared in early 2022 and reached its all-time highs after the Russian invasion of Ukraine. This also had an impact on the supply of gas to Europe, which increased the cost of living for citizens, for which the governments promoted measures to control the international price. Among them, the G7 He promoted setting a maximum price cap for Russian oil that is transported through Western companies. This caused Russia to threaten to cut off the supply.
On the other hand, a factor that played against the rise in oil prices was the fear of recession for him cooling of economic activityespecially after the rate hikes driven to contain inflation.
Given the proximity of Hurricane Ian to the Gulf of Mexico, companies such as BP and Chevron announced that they were shutting down production of their offshore platforms. On the other hand, the drop in prices alerted the OPEC that he announced that he could set a price for his basket of crude oils around US$100 and that he could review his supply of crude oil to the market.
Source: Ambito
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