2023-07-04 18:15:00
London: Oil prices rose on Tuesday, alternating up and down since the day before, caught between announcements of reduced supply from Russia and Saudi Arabia and fears for the global economy. Around 4:00 p.m. GMT (6:00 p.m. CET) , the barrel of Brent BRENT Brent or North Sea crude is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for setting oil prices. from the North Sea, for delivery in September, rose 2.02% to 76.16 dollars.
Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil that serves as a standard in pricing crude oil and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.) for August delivery, was up 2.13% to $71.28.
On Tuesday, two of the world’s top three crude producers, Saudi Arabia and Russia, announced cuts in their supply: a renewal in August of a limitation on extractions for the first, a drop in exports for the second.
After climbing in the wake of this announcement, prices fell back later in the session.
They are now rebounding “but remain below the peak observed on Monday”, notes Craig Erlam, analyst at Oanda, who sees a lack of appetite for oil on the part of investors.
“The Saudi announcement was widely anticipated” given the lack of momentum in the oil market, comments Warren Patterson, analyst at ING, and if the Russian promise was unexpected, “there will be doubts regarding the application of the measure “.
“Russia says it cut production by 500 million barrels a day earlier in the year, but maritime exports remain at pre-war levels” in Ukraine, he adds.
“Uncertainties regarding the global economy” dominate the market for the moment, explains Ricardo Evangelista, analyst at ActivTrades.
The demand for black gold might indeed suffer from a less marked recovery than expected in China and from the policies of the fight once morest inflation of the central banks which slow down growth throughout the world.
“In this context, the effect of announcements of lower production on prices is limited,” adds Mr. Evangelista.
On Tuesday, trading volumes were also limited by a national holiday in the United States.
(c) AFP
Comment Oil recovers, market hesitates following new announcements on production
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