Tuesday , June 28 2022

Oil prices collapsed to start the week after the worst day of the past three years



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Oil prices in the U.S. returned Monday after last week's biggest one-day loss for the futures contract in about three years, as investors faced supply problems before an OPEC meeting.

Prices may recover some of their heavy losses since the end of last week, but "the pressure to lower oil is still on the back of rising supply and slowing demand growth, which will lead to an oversupply in oil supplies by next year "at ICICI Bank wrote in a note Monday.

January West Texas Intermediate gross

CLF9, + 3.29%

rose $ 1.70, or 3.4%, to $ 52.12 a barrel on the New York Mercantile Exchange. In a shortened holiday session on Friday, the contract fell 7.7 percent to $ 50.42, marking the worst session on July 6, 2015, and the smallest settlement on October 9, 2017, according to Dow Jones Market Data . It also marked the seventh weekly decline – a 10.6% drop.

January Brent Global Indicator

LCOF9, + 3.71%

also rebounded Monday with $ 2.10, or 3.6%, to $ 60.90 a barrel on ICE Futures Europe, after closing 6.1% to $ 58.80 per barrel Friday. Brent lost almost 12% during the week.

More risky assets, such as oil and shares shot last week, could get a boost if a high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping in the group of 20 meetings in Argentina – commercial progress.

Read: Stock Exchange indices record the most grave weeks of Thanksgiving in 2011 – all three fell by at least 3.5%

"near [the] Xi-Trump's G-20 meeting, today's gossip spins around oil ministers in Saudi Arabia and the Russians, saying they intend to make a trip to Buenos Aires, which increases the hope that a certain form of agreement rebalancing will come to fruition, "said Stephen Innes, Asia-Pacific trading at Oanda, in a note to customers.

The oil market is waiting for a meeting of Oil Organization Exporting Countries scheduled for December 6, which is shadowed by the concerns of a global oil complaint. The cartel may consider a solution to rebalance the offer but keeps prices at a higher leeway, keeping outbound targets set in 2016, The Wall Street Journal quoted sources.

Among other contracts, natural gas in December

NGZ18, -4.18%

continued sliding on Monday, down 14.6 cents, or 3.4 percent, to $ 4.122 a million British heating units, after rising 0.8% last week despite the decline by more than 3% on Friday.

Petrol in December

RBZ8, + 4.60%

increased by 4% to $ 1,447 / gallon after a 11.8% withdrawal last week, the biggest drop in February 2016. The contract fell by almost 8% on Friday, the highest fall since February 2 2009.

December heating oil

HOZ8, + 1.98%

rose 1.7%, to $ 1,908 after dropping 9.5% last week. The contract was set at 4.8%, reaching $ 1.8762 per gallon on Friday, the lowest settlement for a March contract.

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