Oil prices are rising during trading on Tuesday after falling in the previous session.
The cost of January futures for Brent oil on the London ICE Futures exchange by 8:06 am TSK on Tuesday is $93.57 per barrel, which is $0.76 (0.82%) higher than the closing price of the previous session. As a result of trading on Monday, these contracts fell by $0.96 (1%) to $92.81 per barrel.
The price of futures for WTI oil for December in electronic trading on the New York Mercantile Exchange (NYMEX) rose by this time by $0.59 (0.68%), to $87.12 per barrel. By the close of previous trading, the value of these contracts fell by $1.37 (1.6%) to $86.53 per barrel.
Traders are also waiting for meetings of large central banks, writes Bloomberg.
The US Federal Reserve System (FRS) will sum up the results of a two-day meeting on Wednesday against the backdrop of persistently high inflation in the States. On Thursday, the decision on the key rate will be made by the Bank of England.
Support for oil comes from the weakening dollar, which makes commodity prices more attractive to investors.
Meanwhile, the OPEC annual review says that the annual growth in oil demand in the world until 2025 will average 2.1 million b / d, in the next 10 years it will slow down and stabilize by 2035.
According to the report, in 2022, global oil consumption will rise to 100.3 million b/d after 96.9 million b/d in 2021. Further, demand will increase significantly from year to year until 2025: by an average of 2.1 million bpd.
The total oil production quota of the OPEC+ countries has been reduced by 2 million barrels per day since November compared to August levels (coincides with October quotas – IF).
The decision was made by the alliance at a meeting held on October 5, which was held in person for the first time in more than two years.
Oil prices tumble on Monday on signs of a continued slowdown in economic activity in China due to tight quarantine measures to curb the spread of COVID-19.
The Purchasing Managers’ Index (PMI) for China’s manufacturing industry fell to its lowest level since July of 49.2 in October from 50.1 a month earlier, according to data from China’s National Bureau of Statistics (GSO).
An index value below 50 points indicates a decline in activity in the sector.
PMI services in China in October fell to 48.7 points, dropping below 50 points for the first time since May.
The cost of December futures for Brent oil on the London ICE Futures exchange by 8:15 am TST on Monday is $95.03 per barrel, which is $0.74 (0.77%) lower than the closing price of the previous session. As a result of trading on Friday, these contracts fell by $1.19 (1.2%) to $95.77 per barrel.
December futures expire at the close of the market on Monday. More actively traded January contracts fell by $0.69 (0.74%) to $93.08 per barrel.
The price of futures for WTI oil for December in electronic trading on the New York Mercantile Exchange (NYMEX) has decreased by $0.49 (0.56%) by this time, to $87.41 per barrel. By the close of previous trading, the value of these contracts fell by $1.18 (1.3%) to $87.9 per barrel.
As a result of last week, Brent rose by 2.4% per barrel, WTI – by 3.4%. The market closes the month with a rise of almost 10% due to the decision taken by OPEC + to cut production from November by 2 million barrels per day.
“Oil prices are likely to rise as OPEC+ cuts production and the EU embargo on Russian oil purchases (introduced in response to the continuation of the full-scale war unleashed by the Russian Federation against Ukraine – IF) will come into force on December 5,” notes the managing director Vanir Global Markets in Singapore James Whistler quoted by Bloomberg.
Oil prices are falling during trading on Friday after a steady rise the day before.
December futures for Brent on London’s ICE Futures exchange fell by $0.77 (0.79%) by 8:00 a.m. to $96.19 per barrel. As a result of trading on Thursday, they rose by $1.27 (1.33%) to $96.96 per barrel.
Quotes of WTI futures for December in electronic trading on the New York Mercantile Exchange (NYMEX) by the specified time decreased by $0.94 (1.06%) to $88.14 per barrel. According to the results of previous trading, they increased by $1.17 (1.33%) to $89.08 per barrel.
Despite Friday’s decline, oil prices may end the week with growth on the back of a sharp fall in the dollar, as well as data on US exports.
Meanwhile, investors remain cautious amid an uncertain demand outlook due to rising inflation, higher interest rates and growing recession risks, writes Trading Economics.
Earlier this week, it became known that US commercial oil inventories increased by 2.59 million barrels last week, while experts polled by Bloomberg expected a more moderate increase – by 1.5 million barrels.
The US Department of Energy report also reported that gasoline inventories fell by 1.48 million barrels, while distillate reserves increased by 170 thousand barrels. Analysts predicted a decline in gasoline by 1.5 million barrels, distillates – by 1 million barrels.
Oil prices rise moderately on Thursday morning after rising to two-week highs the day before, provoked by the depreciation of the dollar and data on the reduction of gasoline inventories in the United States.
The price of December futures for Brent on London’s ICE Futures is $95.93 per barrel by 8:02 a.m., which is $0.24 (0.25%) higher than the closing price of the previous session. As a result of trading on Wednesday, these contracts rose by $2.17 (2.3%) to $95.69 per barrel.
The price of futures for WTI oil for December in electronic trading on the New York Mercantile Exchange (NYMEX) is $88.1 per barrel by this time, which is $0.19 (0.22%) higher than the final value of the previous session. A day earlier, the contract rose in price by $2.59 (3%) to $87.91 per barrel.
As it became known on Wednesday from the report of the US Department of Energy, commercial oil reserves in the country increased by 2.59 million barrels last week, while experts polled by Bloomberg expected a more moderate increase – by 1.5 million barrels.
Inventories of gasoline decreased by 1.48 million barrels, while distillate reserves increased by 170 thousand barrels. Analysts predicted a decrease in gasoline stocks by 1.5 million barrels, distillates – by 1 million barrels.
“Drunken gasoline inventories suggest that the economy and driving may not be as bad as expected,” said Michael Lynch, president of Strategic Energy & Economic Research.
Meanwhile, the ICE-calculated index, which shows the dynamics of the dollar against six major world currencies, fell 1.2% the day before. Wednesday’s rise in oil prices “was actually the result of the dollar’s decline,” Phil Flynn, senior analyst at The Price Futures Group, told MarketWatch.
Oil prices are falling on Wednesday morning after a moderate rise the day before, caused by concerns about the supply of fuel on the world market and the weakening dollar.
The price of December futures for Brent on London’s ICE Futures exchange is $92.79 per barrel by 8:08 qoq, which is $0.73 (0.78%) lower than the closing price of the previous session. As a result of trading on Tuesday, these contracts rose by $0.26 (0.3%) to $93.52 per barrel.
The price of futures for WTI oil for December in electronic trading on the New York Mercantile Exchange (NYMEX) is $84.84 per barrel by this time, which is $0.48 (0.56%) lower than the final value of the previous session. A day earlier, the contract rose in price by $0.74 (0.9%) to $85.32 per barrel.
The ICE-calculated index, which shows the dynamics of the dollar against six currencies (the euro, the Swiss franc, the yen, the Canadian dollar, the pound sterling and the Swedish krona), lost about 1% on the eve, which supported oil quotes.
In addition, the market on Tuesday reacted to statements by Saudi Energy Minister Prince Abdulaziz bin Salman that the lack of strategic reserves of raw materials and free mining capacity could become painful for the market in the coming months.
Meanwhile, the American Petroleum Institute (API) reported Tuesday night that U.S. inventories rose by 4.5 million barrels last week. Experts, on average, expected a more moderate growth, in the region of 200,000 barrels.
Official data from the Energy Information Administration of the US Department of Energy will be released on Wednesday at 17:30 qoq, and analysts polled by Trading Economics predict that the report will indicate an increase in oil inventories by 1.03 million barrels and a decrease in gasoline reserves by 0.8 million barrels.
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.
