The crude West Texas Intermediate (WTI), which is listed on the futures market of New York (Nymex), decreases 2.9% and trades in $71.15 per barrel in the contracts with delivery in July.
the brent, that operates in the London electronic market (ICE), falls 2.6% and operates in the range of $75.81 per barrel in contracts for delivery in August.
In a day marked by volatility in the markets, Crude started to rise driven by lower supply derived from the production cut promised by Saudi Arabia and a possible pcause of interest rate hikes in the US that offset concerns about weak demand and the global economic slowdown.
However, the markets began to drift this Thursday June 8 after US labor market data raise concerns that the Fed will continue with its policy hawkish.
New rises in sight?
Last week’s jobless claimsexceeded expectations, reaching 261,000 compared to the 235,000 forecast. This sets up a possible easing In the labor market.
As for the outlook for interest rates, employment data they come at a bad timesince they are known just before the next Federal Reserve meeting, where it will be decided if there will be an increase in the monetary policy rate.
Futures traders anticipate the Fed will pause the increases and that there will be another increase of a quarter of a percentage point in July. This pause will allow monetary policy makers to assess the impact of the ten consecutive hikes carried out so far.
In addition, it is expected that, during the announcement of the decision of the body that leads Jerome Powellmembers’ production forecasts are published economy, inflation and unemployment.
On Tuesday June 13, just as the Fed’s two-day meeting begins, the Labor Department is expected to publish the most recent report on the consumer price index. In this sense, prices are expected to have slowed down in May.
Source: Ambito
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