Amid the latest outbreak of COVID-19 in China, the possible measures of the European Union once morest Russian fuel, as well as the expectations of increases in interest rates by the Federal Reserve (Fed) of the United States, Oil prices have fallen, posting a weekly loss of nearly 5%.
Robbie Fraser, global manager of research and analysis at Schneider Electric, noted in a note that the Fed is expected to “aggressively raise interest rates in the coming months to combat inflation levels that have hit multi-decade highs in many cases. ”.
Traditionally, higher rates represent bearish trends for dollar-denominated commodities like crude oil. However, the risks of not achieving a balance represent a threat to the energy market.
Prices of a barrel of Brent and Texas oil today, April 23: how much does it cost and how much is it quoted?
In accordance with Bloomberg Energywith the market closed, a barrel of West Texas Intermediate (WTI) oil fell 1.66% and is at $102.07. On the other hand, the Brent barrel is at $106.65, down 1.55%.
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Despite the fall, the price is still above $100 when it fell below this figure a few weeks ago following the announcement that several countries would release barrels of oil from their strategic reserves to avoid Russian fuel.
However, the measures have not been enough. As long as the conflict between Russia and Ukraine continues, as well as the measures and a possible embargo once morest Moscow, any potential threat to supply might put upward pressure on prices, keeping the energy market volatile.
This week, production cuts in Libya kept prices sustained; however, investors remain attentive to a possible plan by the countries of the European Union to gradually eliminate imports of Russian oil, which might affect the price of crude oil given the uncertainty of shortages.
Although in the short term the release of reserves by several countries is expected to help offset Russian fuel, by 2023 and subsequent years, global producers will likely need to increase investment to cover Russian supply and replenish their strategic reserves.
