Traders are evaluating both signals of weakening global economic growth and the prospects for a reduction in fuel supply on the world market. In particular, investors are waiting for details of the US-promoted plan to introduce a price ceiling for Russian oil against the backdrop of a full-scale war unleashed by the Russian Federation against Ukraine, writes Bloomberg.
The price of December futures for Brent on London’s ICE Futures is $93.25 per barrel by 8:15 ET on Tuesday, which is $0.01 (0.01%) lower than the closing price of the previous session. As a result of trading on Monday, these contracts fell by $0.24 (0.3%) to $93.26 per barrel.
The price of futures for WTI oil for December in the electronic trading of the New York Mercantile Exchange (NYMEX) rose by this time by $0.03 (0.04%), to $84.61 per barrel. By the close of previous trading, the value of these contracts fell by $0.47 (0.6%) to $84.58 per barrel.
Published the day before, statistical data from China, which is the world’s largest oil importer, were mixed. The growth of the country’s GDP in the third quarter exceeded forecasts, while the September increase in retail sales was the lowest in 4 months, and the increase in imports fell short of experts’ expectations.
In addition, reports of the introduction of quarantine restrictions in the major Chinese city of Guangzhou dampened risk appetite in global markets, including oil.
“It is possible that the risks of a recession, as well as a drop in demand in China, are exaggerated and already priced into the market,” said Steven Innes, managing partner of SPI Asset Management, quoted by Bloomberg. in response to the military aggression of the Russian Federation against Ukraine – IF) on the supply of Russian oil to the European Union in December – these are the main factors that will serve as catalysts for rising prices and lead to their rise to $100 per barrel by the end of the year.
