Oil prices fall by fourth consecutive day and remains near three-week lows, as investors weighed mixed US economic data, Venezuela’s sanctions on Iran and the easing of tensions in the Middle East.
The futures of Brent fell 18 cents, or 0.2%, to settle at $87.11 a barrel, while U.S. crude West Texas Intermediate (WTI) rose 4 cents, or 0.1%, to settle at $82.73.
It was Brent’s lowest close since March 27, for the second day in a row. On Wednesday, WTI also closed at its lowest level since March 27.
Increased interest in energy trading drove open interest in Brent futures on the Intercontinental Exchange to its highest level since February 2021 for the second day in a row on Wednesday.
What are the key data that put a brake on oil?
The resistance of American labor market, that is driving the economy, along with high inflation have led financial markets and some economists to expect that the US Federal Reserve delays interest rate cut Until September. Lower interest rates would reduce borrowing costs and could stimulate economic growth and oil demand.
In Europe, the European Central Bank made it clear that an interest rate cut will occur in Junebut monetary officials continued to disagree on what measures to take thereafter or how far they can lower interest rates before stimulating the economy again.
In China, the world’s largest oil importercentral bank senior officials said there is still room for the agency to take measures to support the economy, but that efforts are needed to prevent cash from circulating through the banking system as real demand for credit weakens.
On the supply side, Venezuela, member of OPEClost aa key US license that allowed it to export oil to markets around the world, which will affect the volume and quality of its crude and fuel sales.
Washington also announced sanctions against Irananother OPEC member, targeted the country’s production of unarmed aerial vehicles following its drone attack on Israel last weekend.
In the last three sessions, in which Brent lost around 3.5%, investors have largely been undoing the oil price geopolitical risk premiumgiven the perception that any Israeli retaliation to Iran’s April 13 attack will be moderated by international pressure.
Source: Ambito
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