2023-08-09 20:22:21
Closing price: Oil prices rose on Wednesday to ten-month highs for WTI, benefiting from both the decline in the dollar and the return of risk appetite, once morest a backdrop of limited supply from OPEC +. 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 October delivery, gained 1.60% to $87.55, a high since January.
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 September delivery, rose 1.78% to $84.40, the highest since November 2022.
The barrel price Texan “is at its highest since OPEC + decided to cut its production by 2 million barrels in November”, commented Robert Yawger of Mizuho Securities.
Production by the OPEC+ group (OPEC and its allies) also reached its lowest level in nearly two years in July, according to a Platts survey by S&P Global.
Riyadh’s output last month was cut to 9.05 million barrels per day, the lowest since June 2021, out of a total of 40.4 million barrels per day of crude in the OPEC+ alliance .
Saudi Arabia also announced last week the extension of its voluntary production cuts of one million barrels per day until September. Russia immediately disclosed a reduction in its oil exports of 300,000 barrels per day.
THE oil price also benefited from the return of investors’ risk appetite and the weakening of the dollar, following an official of the United States Federal Reserve estimated on Tuesday that the institution’s rates might remain stable at the next meeting in September .
Oil purchases, denominated in dollars, are indeed more attractive for investors using foreign currencies, as the depreciation of the greenback increases their purchasing power.
Geopolitical tensions on the Black Sea also instilled “anxiety in the market, which wonders how the Russian cargo ships will escape the fire of the Ukrainians”, estimated Mr. Yawger. “It’s starting to heat up,” he added.
On the other hand, the analyst signaled the difficulties of the Chinese economy following disappointing trade data and the announcement of a negative evolution of prices (-0.3% for the CPI index in July).
Finally, in the United States, while commercial crude reserves increased last week by 5.9 million barrels — an expected rebound following the huge 17 million barrel drain on inventories the week before — , gasoline reserves decreased by 2.7 million barrels, showing strong demand for fuels.
(c) AFP
Oil: Brent at 7-month high, WTI at 10-month high
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