The weak economic news of the United States and Germany fueled the fear of a lower demand for energy, along with signs from several countries that crude oil production was on their way to increasing.
Oil prices sank about 3% to a minimum of two months This Tuesday, due to weak economic news from the United States and Germany, that fueled him Fear of lower energy demandalong with signals from several countries that crude oil production was on their way to increasing.
Brent’s futures decreased $ 1.99, or 2.7%, at $ 72.79 a barrel, while the crude West Texas Intermediate (WTI) American lost $ 1.92, or 2.7%, $ 68.78. The Brent He closed at his lowest level since December 23 and the WTI ended in minimums since December 10.
The US data showed that consumer confidence in February It deteriorated at its most pronounced pace in three and a half years, with an increase in inflation expectations to 12 months.
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The Trump effect weighs on the price of oil
Analysts said the president’s plans Donald Trump of Increasing tariffs have generated concern about the inflation of the United States Federal Reserve. This could lead to Fed to Keep higher interest rateswhich in turn could decelerate economic growth and energy demand.
Trump said the tariffs against Canadian and Mexican imports scheduled to begin on March 4 are “on time and as scheduled”, which could actually boost oil prices by reducing the supplies of both countries.
However, analysts of the Ritterbusch and Associate Energy Advisory firm said “Tariffs look more and more as a negative influence on world economic growth that could force more downward revisions of world oil demand.”
Another factor that also influenced oil prices was 0.2% German economy contraction in the last quarter of 2024 with respect to the previous quarter.
The winner of the German elections, Friedrich Merz, ruled out a rapid reform of the state indebtedness limits, known as the “debt brake”, that some investors have asked to boost the economy.
The possibility of a peace agreement between Russia and Ukraine also influenced prices that “Prefigures the lifting of sanctions to Russia, which could welcome a Russian supply without restrictions back to the market,” Tamas Varga said of the PVM oil broker.
Source: Ambito
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