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 4.6% reaching a value of $69.23 per barrel. With this same tendency operates the Brentnegotiated in the electronic market of London (ICE), which suffers a decrease in 4.2%, trading at u$s73.87 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.
Likewise, the report published this Thursday by the Energy Information Management (EIA), US crude inventories experienced a fall, while those of gasoline and distillates showed an increase. In the week ending June 16, crude oil inventories were reduced by 3.8 million barrelsreaching a total of 463.3 million.
Regarding crude oil inventories at the Cushing, Oklahoma delivery centera decrease of 98,000 barrels was registered during the week, according to the EIA. On the other hand, the production of crude oil in the refineries decreased by 116,000 barrels per day in the same period, and refinery utilization rates also fell by 0.6%.
US gasoline stocks
Regarding gasoline, inventories in the United States experienced an increase of 500,000 barrels, reaching a total of 221.4 million barrelsexceeding the expectations of analysts polled in the Reuters poll, who expected an increase of 100,000 barrels.
As for the distillates, which include diesel and heating oil, an increase of 400,000 barrels was observed during the week, reaching a total of 114.3 million barrels. These dates differed from expectations that pointed to an increase of 700,000 barrelsaccording to EIA data.
Finally, net imports of US crude were reduced by 1.49 million barrels per day, according to EIA reports. These data reflect the most recent changes in inventories of crude oil, gasoline and distillates in the US, which has implications both for the energy market and for the economy in general.
Source: Ambito
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