New York’s West Texas Intermediate (WTI) crude futures ended lower from $100 on Tuesday, with markets still under pressure on fears of a prolonged Chinese lockdown on key cities. Longer periods will affect the economy and oil demand. In addition, gold contracts are also affected by the strength of the dollar.
The WTI crude oil contract will be delivered in June. It fell $3.33, or 3.2%, at $99.76 a barrel.
Brent crude oil contract (BRENT) for delivery in July. It fell $3.48, or 3.28%, at $102.46 a barrel.
WTI crude futures fell from $100 for the first time since April 27, 2022 as investors continue to worry that China’s prolonged lockdown of Shanghai and partial lockdown in Beijing to contain the spread of the coronavirus will plunge the economy into recession and slow oil demand. down too
Shanghai reports new cases of COVID-19. The new number continued to decline. But Shanghai’s municipality continues to implement strict epidemic control measures under the Zero Covid Policy, which is increasingly making China more isolated from the international community. While other countries have begun to ease restrictions and allow people to live with the COVID-19 virus.
Warren Patterson, an analyst at ING, said: The trading climate in the oil market has been pressured as the European Union (EU) has yet to formally impose sanctions on Russian oil. The president of the European Commission (EC) Ursula von der Leyen, the EU’s executive body, has asked EU members to suspend imports of Russian crude and refined oil products in response to the military’s invasion of Ukraine.
The sanctions on oil from Russia must be approved by all 27 EU member states for it to come into force officially.
In addition, the appreciation of the dollar has resulted in oil contracts priced in dollars. It is more expensive and less attractive to investors holding other currencies by the dollar index. The dollar’s movement index once morest six major currencies in a basket of currencies rose 0.26% to 103.9200 overnight.
Investors Keep an Eye on the Weekly US Crude Stock Report The US Energy Information Administration (EIA) is scheduled to release the said information today at 9:30 p.m. U.S. crude stockpiles will drop by 500,000 barrels.
