2023-10-24 19:46:40
Oil prices fell once more on Tuesday, a reflection of market concerns regarding the trajectory of the global economy, while the situation in the Middle East appears contained, for now.
The price of a barrel of Brent from the North Sea for delivery in December lost 1.95%, to close at $88.07.
Its American equivalent, the West Texas Intermediate (WTI) of the same maturity, lost 2.04%, to 83.74 dollars. In three sessions, WTI lost more than 6%.
“The movement corresponds to the vision of a localized conflict”, which does not spread, commented, in a note, Daniel Ghali, of TD Securites, on the subject of the war between Israel and the Palestinian Islamist movement Hamas.
Israeli troops remain stationed on the border of the Gaza Strip, where they have been positioned for several days, awaiting the order for an offensive intended to “crush” Hamas, according to Prime Minister Benjamin Netanyahu.
The market also noted a stabilization of the situation on the border between Israel and Lebanon, following hostilities between the Israeli army and fighters from the pro-Iranian Shiite movement Hezbollah.
“This removes the threat of conflict between Iran and the United States,” said Robert Yawger of Mizuho.
For Daniel Ghali, operators are also less concerned regarding the tightening of the network of sanctions once morest Iran, which might be offset by the use of the excess capacities of several major players in the Persian Gulf.
Prices were also driven by a series of poor PMI activity indicators, particularly in Europe, according to Robert Yawger.
In Germany, the HCOB index for all sectors for October came out at 45.8 points, significantly below the 46.7 announced by economists. A figure below 50 indicates a contraction in activity.
In addition to Germany, which is experiencing its fourth month of contraction in a row, activity has also fallen back in France, the United Kingdom, Australia and Japan.
“And you have all the bosses, the bankers, the hedge fund managers (alternative funds) who tell you how much the economy is going to suffer,” underlines Mr. Yawger. “That doesn’t help.”
The CEO of JPMorgan Chase bank called on Tuesday for “caution regarding what might happen next year”.
Black gold also suffered from market expectations regarding the report from the American Energy Information Agency (EIA), expected Wednesday, for which it projects a significant increase in crude stocks.
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