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Oil deepened its downward trend after recording its biggest drop in two months

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The oil prices they deepened their bearish march this Wednesday March 8in a day in which figures for crude oil inventories in the United States were released.

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the barrel of north sea brent for delivery in May thus yielded 63 cents, 0.8%, to u$s82.66 in London. while the West Texas Intermediate (WTI)) for delivery in April it lost 92 cents, or 1.2%, to $76.66.

As he Brent As the WTI fell more than 3% on Tuesdayafter the US Federal Reserve Chairman Jerome Powellhe said it is entity is likely to have to raise interest rates more than expected in response to recent strong data.

“Fed chief Powell’s comments on higher rates for longer spooked markets and caused risk assets, including commodities, to fall sharply overnight,” said Tina Teng, CMC Markets Analyst.

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The strength of the dollar also limited oil prices. Powell’s comments sent the greenback, which normally trades inversely to crude oil, to hit a three-month high against a basket of currencies.

Barclays lowered its forecasts for 2023 for Brent in u$s6, up to $92 a barrel, and WTI at US$7, up to $87“mainly due to some Russian supplies stronger than expected”said the bank.

“We hope that the continued recovery of demand for civil aviation in China and neighboring countriesa stabilization of industrial activity and a slower non-OPEC+ supply growth take the balance the oil market to a deficit by the end of this year,” he added.

In addition, this Wednesday the Energy Information Administration (EIA)for its acronym in English) reported that the stocks of crude oil and gasoline in the United States fell last weekwhile those of distillates increased.

Crude inventories fell by 1.7 million barrelsto 478.5 million barrels, in the week ending March 3, versus the expectations of analysts polled in a Reuters poll for a rise of 0.4 million barrels.

Source: Ambito

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