Oil prices are showing moderate growth on Monday morning after a sharp decline last week.
The cost of May futures for Brent on the London ICE Futures exchange at 7:02 a.m. is $83.11 per barrel, which is $0.33 (0.4%) higher than the price at the close of the previous session. As a result of trading last Friday, these contracts rose by $1.19 (1.5%) to $82.78 per barrel.
The price of WTI futures for April in electronic trading on the New York Mercantile Exchange (NYMEX) is currently $77.01 per barrel, which is $0.33 (0.43%) higher than the final value of the previous session. Last Friday, the contract rose in price by $0.96 (1.3%) to $76.68 per barrel.
At the end of last week, Brent fell by 3.6%, WTI – by 3.8%.
The main negative factor for the oil market last week was the fear of a more aggressive monetary policy of the Federal Reserve. Federal Reserve Chairman Jerome Powell said that the central bank would have to raise rates more than previously expected to fight inflation.
In addition, on Friday it became known that the American bank Silicon Valley Bank came under the control of the Federal Deposit Insurance Corporation (FDIC). The FDIC will sell the assets of Silicon Valley Bank, which will allow it to make payments on uninsured deposits.
“Fears of further tightening of the SAR and risks in the financial industry have raised concerns about demand,” said Charu Chanana, market strategist at Saxo Capital Markets Pte. Charu Chanana, a market strategist at Saxo Capital Markets Pte.
Meanwhile, the number of operating oil rigs in the United States last week decreased by 2 units to 590, according to oilfield services company Baker Hughes. The number of rigs declined for the fourth week in a row, updating the lowest level since June last year.
