Brent crude futures lost $2.59 (-3.5%) and West Texas Intermediate in the United States (WTI) fell $2.65 (-3.8%).
The prices of raw they collapse this Monday, June 12 and touches lows of almost 6 weeks, before the meeting of the Federal Reserve from United Statesas investors tried to gauge their appetite for further interest rate hikes and amid concerns about the outlook for Chinese demand and rising Russian supply.
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crude oil futures Brent lose 2.59 dollars (-3.5%) to 72.20 dollars per barrel, and West Texas Intermediate in the United States (WTI) falls 2.65 dollars (-3.8%) to 67.52 dollars, although it came to operate at 66.83 dollars, its minimum value since the beginning of May.
Last week, both benchmarks posted their second consecutive weekly decline as disappointing Chinese economic data raised fears for demand growth in the world’s biggest crude importer.
This contributed to erasing the momentum in prices after the Saudi Arabia pledges to cut production in July at 1 million barrels per day (bpd).
Crude prices between “bearish” and “bullish” forces
“Oil prices are locked in a clash between two opposing forces: bears pointing to monetary tightening and bulls expecting lower inventories in the second half of 2013”said francisco blanchof Bank of America Global Researchin a note.
In that sense, he added that “the bears will maintain the upper hand for now, since oil prices will have a difficult time rising until the Fed relaxes the money supply.” The entity is still waiting for the Brent is located around the 80 dollars per barrel in 2023.
The Fed’s rate hikes have strengthened the greenback, making dollar-denominated commodities more expensive for holders of other currencies and dragging down prices.
Most market players expect the Fed to keep rates unchanged when it concludes its two-day monetary policy meeting on Wednesday, June 14.
Source: Ambito
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