2023-06-06 11:47:43
London: Oil prices faltered on Tuesday, just two days following the announcement of voluntary production cuts from Saudi Arabia, investors focused on macroeconomic data and demand.
Around 09:55 GMT (11:55 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 August, was losing 1,59% To 75,49 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 delivery in July, was abandoning 1,64% To 70,97 dollars.
“Macroeconomic data (remains) the main driverof oil demand in the eyes of investors, says Stephen Innes of SPI AM.
The services activity index in the United States published on Monday disappointed, barely progressing in May, dragging oil prices down.
This drop in prices comes despite Saudi Arabia’s decision to make a new production cut from July, an announcement made on Sunday following a meeting in Vienna of OPEC + (the thirteen members of the Organization of the Petroleum Exporting Countries and their ten allies led by Russia).
The gains related to the announcement have thus already been erased, for the 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. as for the 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..
“We saw a similar price reaction in October last year, when a reduction in 2 million barrels per day was announced, and at the beginning of April“, when members of OPEC+ decided to withdraw an additional 1.66 million barrels per day from the market, recalls Tamas Varga, of PVM Energy.
He thus evokes rises in prices “brief“, the “entrenched inflationary pressure“and the possibilities”further interest rate hikes“of the major central banks always end up weighing on economic growth, and therefore demand.
Saudi Arabia’s announcement, however, gives it a “considerable flexibility“, note Stephen Innes.
“If demand disappoints, Saudi Arabia might extend its cut by 1 million barrels per day, which would keep global stocks low“, he explains.
On the other hand, in the event of global demand supported by China’s economic recovery and the easing of recession fears, Saudi Arabia might then afford “to cancel his temporary reduction without harming his credibility“, according to Mr. Innes.
(c) AFP
Commenter Oil falters, the effect of the Saudi announcement erased
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