The oil prices experience a decline in the markets New York and Londondue to the concerns of the operators about the downward impact of interest rate hikes which, in part, were offset by the data potentially bullish of US crude inventories after preliminary figures will show a drop in stocks.
In the futures market NY (Nymex), crude West Texas Intermediate (WTI) registers a drop in 2.9% reaching a value of $70.36 per barrel. With this same tendency operates the Brentnegotiated in the electronic market of London (ICE), which suffers a decrease in 2.8%, trading at u$s74.92 per barrel.
Besides, the Organization of Petroleum Exporting Countries (OPEC) reported that its crude basket closed on Wednesday at US$77.24 per barrel, compared to US$76.85 on Tuesday, which represented an increase of 0.50%. Despite this increase, prices in international markets experience a downtrend this Thursday.
Oil: the factors that impact the price
These movements in oil prices reflect changing market dynamicsinfluenced by a number of factors, such as fluctuations in demand and supplyas well as the expectations around the interest rates and inventory data.
The operations of this Thursday are marked due to caution in the markets after the statements of the president of the Federal Reserve, Jerome Powellwho advanced two more increases in interest rateseach one of 25 basis points, by the end of the year. This news had an impact immediately in the commodity market.
Also, the bank of englandin line with what the market expects, raised interest rates by half a percentage point, in its fight against persistently high inflation. This configured the thirteenth consecutive rise by the British central bank. However, it is important to note that higher interest rates directly impact economic growth and oil demand.
In addition to these factors, there are other elements that will influence oil prices in the coming days. Among them are official data on oil inventories in the United States and the data on the Chinese factory activity, which will be published next week. These reports will be clue to assess the supply and demand of crude oil in the international market.
In a preliminary indicator, US crude oil inventories were seen to decline by about 1.2 million barrels last weekdefying expectations of an increase in 300,000 barrels. This data indicates a possible decrease in the supply of oil, which could have an impact on prices in the coming days.
Source: Ambito
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