Friday , March 31 2023

Brent Crude follows the US oil market


Brent crude oil price fell for the first time in seven months on Friday, below the $ 70 barrel price, moving to the edge of the bear market.

Brent Crude, the world index, fell 1.6 percent to $ 69.55 a barrel on the London Stock Exchange ICE Futures. At the New York Stock Exchange, Medium-Term Futures in West Texas declined by 1.7% to $ 59.67 per barrel.

The global benchmark was ready to join the WTI in the bear market, after the US price on Thursday expanded its losses from the four-stroke blows since early October, exceeding 20%.

Beer markets are generally defined as a 20% decline from a peak of the market, and Brent has recently declined by 19.2% from its four-year level reached in October.

Oil-specific factors such as increasing production and lowering US oil sanctions on Iran have combined wider market concerns about global economic growth and wage growth, prompting, in October,

Brent is at the top of a bear market.

Brent is at the top of a bear market.


ann heisenfelt / European Press Agency


"We have seen a high production from OPEC over the past few months – these supply fears have disappeared – and focused on the fact that the global economy is slowing down, especially in China," said Caroline Bain, economist at Capital Economics.

Sales have accelerated in the last few days by publishing energy information management numbers, which indicate oil stocks in the United States. at a five-month level. Delegates from the Organization of Oil-Exporting Countries will consider these figures when they meet with non-OPEC members this weekend in Abu Dhabi.

Investors will be watching the titles at the OPEC + conference, because failure to signal a reversal of recent output growth is likely to be a further pressure on prices, Commerzbank analysts said in a note.

While many factors have been combined to boost oil sales, investors looking beyond short-term factors have good reasons to be optimistic about a rebound in prices, analysts said.

The Trump administration's sanctions on Iranian oil sanctions will be temporary and stock markets have stabilized. In addition, Saudi Arabian communications suggest that the Gulf of Mexico can turn into spare production to overcome the shortcomings left by Iranian, Venezuelan and Libyan production deficits are overtaken, according to Harry Tchilinguirian, global commodity markets chief at BNP Paribas.

"While short-term factors have weighed on sentiment, we do not think Saudi Arabia can offset these countries, and demand for oil will increase seasonally, so it could be a good time to get into oil," said Mr Tchilinguirian .

Adding pressure to cargo on Friday was a rebound in the US dollar. The WSJ dollar index – which measures the US currency against a basket of 16 other people – rose 0.2 percent after reversing its losses in recent weeks and expanding its growth to 5.3 percent.

Dollar-denominated goods, like oil, tend to become more expensive for other currency holders when the dollar rises.

Attention also focused on production in North America after a Montana judge ordered the construction of the Keystone XL pipeline to stop.

Nymex blended with gasoline blends – the benchmark gasoline contract – fell 0.19% to $ 1.64 per gallon. ICE changed hands to $ 650.75 per metric ton, down 2.8%.

Write to David Hodari at [email protected]

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