Oil plunged on reports of a possible US-Iran nuclear deal

Oil plunged on reports of a possible US-Iran nuclear deal

The price of a barrel of oil fell this Thursday, June 8, in New York, due to later denied versions of a possible agreement between the USA and Iran on nuclear activities in the Persian country, which would determine a significant increase in the global supply of crude oil, in the midst of depressed world demand.

The versions reported on a possible agreement between the USA and Iran that it would lift some sanctions on exports from that country, but that the White House he was quick to disqualify, which caused the price of oil to limit his losses in the final stages of the day.

US economic outlook

Previously, analysts had pointed to optimism over the latest data on demand in USA and China as a reason for the initial increases in crude oil. Although the buying spirit soon faded when the figures for the applications for initial unemployment benefits.

This has been the highest level of procedures since October 30, 2021, when it reached 264,000 orders.

In the week that ended on May 27, there were 1,757 million people who received this benefit, 37,000 less than in the previous week. This suggests that the labor market is cooling off and this represents another sign of weak demand for fuels.

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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