Oil prices almost do not change on Tuesday after the end of trading on the previous day with growth.
The cost of November futures for Brent crude on the London ICE Futures exchange by 8:30 am UTC is $92.08 per barrel, which is $0.08 (0.09%) higher than the closing price of the previous session. As a result of trading on Monday, these contracts rose by $0.65 (0.7%) to $92 per barrel.
The price of futures for WTI oil for October in the electronic trading of the New York Mercantile Exchange (NYMEX) fell by this time by $0.06 (0.07%), to $85.30 per barrel. By the close of the market on Monday, the value of these contracts increased by $0.6 to $85.36 per barrel.
The focus of traders this week is a number of meetings of the central banks in the world, including meetings of the Fed and the Bank of England. Fears related to the fact that the rapid tightening of monetary policy by the world’s central banks will lead to a recession in the global economy and a drop in oil demand are one of the key factors pushing down the oil market in recent months.
Meanwhile, a potential increase in supply in the market may also have a negative impact on oil prices. The administration of US President Joe Biden has announced that it will sell an additional 10 million barrels of oil from the strategic reserve, writes Bloomberg.
In addition, the UAE national oil company Adnoc announced measures to increase production to 5 million barrels of oil per day by 2025 from the current 3.4 million barrels per day.
Meanwhile, refineries in China have submitted bids to supply an additional 15 million tons of petroleum products as part of the export quota, which could increase the supply of fuel in the world.
Benchmark oil prices rose weakly on Friday morning after a sharp decline the day before, driven by a stronger dollar and worries about global fuel demand.
The price of November futures for Brent oil on the London ICE Futures exchange by 8:08 am UTC on Friday is $91.19 per barrel, which is $0.35 (0.39%) higher than the closing price of the previous session. As a result of trading on Thursday, these contracts fell by $3.26 (3.5%) to $90.84 per barrel.
The price of futures for WTI oil for October in the electronic trading of the New York Mercantile Exchange (NYMEX) is $85.30 per barrel by this time, which is $0.20 (0.24%) higher than the final value of the previous session. By the close of the market the day before, the value of these contracts fell by $3.38 (3.8%) to $85.10 per barrel.
“The dollar has rebounded strongly and is holding near recent highs amid a hawkish Fed policy outlook for the coming months,” StoneX energy analysts wrote in a note.
The September Fed meeting will take place next week, and the market is confident that the central bank will again raise its key rate by 75 basis points to slow down the continued high inflation in the US.
“For the near term, we remain cautious on oil prices as the global economy is under pressure from rising rates, undermining fuel demand,” Peter Cardillo, senior market economist at Spartan Capital Securities, wrote in a note.
Oil prices are slightly reduced in trading on Thursday after a steady rise in the previous session.
Traders are keeping an eye on the situation in China, as well as evaluating the announcement of the US Department of Energy regarding plans to replenish the Strategic Petroleum Reserve (SPR).
The authorities of Chengdu, the capital of Sichuan province, are preparing to ease quarantine restrictions in certain areas of the city, which is home to 21 million people, Bloomberg reports.
On the eve of the International Energy Agency (IEA) said that the demand for oil in China in 2022 may decline for the first time since 1990 due to tough measures taken by the authorities to curb the spread of coronavirus. According to the IEA forecast, oil demand in China will decrease by 2.7% this year.
The price of November futures for Brent oil on the London ICE Futures exchange by 8:20 q.m. on Thursday is $93.9 per barrel, which is $0.2 (0.21%) lower than the closing price of the previous session. As a result of trading on Wednesday, these contracts rose by $0.93 (1%) to $94.1 per barrel.
The price of futures for WTI oil for October in the electronic trading of the New York Mercantile Exchange (NYMEX) is $88.41 per barrel by this time, which is $0.07 (0.08%) lower than the final value of the previous session. By the close of the market the day before, the value of these contracts increased by $1.17 (1.3%) to $88.48 per barrel.
The U.S. Department of Energy said on Wednesday that it could start replenishing the Strategic Petroleum Reserve (SPR) only after fiscal year 2023, which begins on October 1. Earlier, Bloomberg reported, citing sources, that the US intends to start replenishing the SPR when oil prices fall below $80 per barrel. The Ministry of Energy noted that its plan for SPR does not provide for a trigger price that should provoke oil purchases.
Oil prices are falling on Tuesday after rising the day before. The pressure on the market is exerted by continuing fears of a decrease in demand due to strict quarantine restrictions in China. The European Union, meanwhile, is preparing a plan to reduce energy consumption in the face of falling gas supplies from Russia.
“We do not think that we can expect a sustainable rally in the market in the near future,” Morgan Stanley’s expert review, quoted by Bloomberg, says. is already reflected in market statistics, and China is a particularly important contributor.”
The cost of November futures for Brent crude on the London ICE Futures exchange by 8:10 am CST on Tuesday is $93.7 per barrel, which is $0.3 (0.32%) lower than the closing price of the previous session. As a result of trading on Monday, these contracts rose by $1.16 (1.3%) to $94 per barrel.
The price of futures for WTI oil for October in the electronic trading of the New York Mercantile Exchange (NYMEX) is $87.58 per barrel by this time, which is $0.20 (0.23%) lower than the final value of the previous session. By the close of the market the day before, the value of these contracts increased by $0.99 (1.1%) to $87.78 per barrel.
The US reaffirmed on Monday that it does not see the possibility of reaching an agreement on the restoration of the Joint Comprehensive Plan of Action soon.
US Secretary of State Anthony Blinken said that he considers the restoration of the JCPOA in the near future unlikely due to Tehran’s position. Last Saturday, Germany, France and the UK expressed “serious doubts” about Iran’s sincerity in seeking to renew the JCPOA and warned that the country’s stance jeopardized the prospects for a deal.
Oil quotes add about 2% during trading on Friday, recovering after falling the day before.
Meanwhile, prices for both brands could show their biggest weekly decline in four weeks amid fears of a recession in the global economy and the consequences of another lockdown in China, writes Trading Economics.
The price of November futures for Brent on the London ICE Futures exchange by 8:10 a.m. on Friday is $94.22 per barrel, which is $1.86 (2.01%) higher than the closing price of the previous session. As a result of trading on Thursday, these contracts fell by $3.28 (3.4%) to $92.36 per barrel.
The price of futures for WTI oil for October in the electronic trading of the New York Mercantile Exchange (NYMEX) is $88.38 per barrel by this time, which is $1.77 (2.04%) higher than the final value of the previous session. By the close of the market the day before, the cost of these contracts decreased by $2.94 (3.3%) to $86.61 per barrel.
As reported, the finance ministers of the G7 countries at a meeting on Friday plan to approve and outline their plan to set a price limit for Russian oil.
Oil prices ended August with a decline and continued to fall on the first day of September.
At the end of last month, Brent fell by 12.3%, WTI – by 9.2%, and negative dynamics were noted for the third month in a row, which is the longest such period since the first half of 2020.
The price of November Brent futures on the London exchange ICE Futures at 8:10 Moscow time on Thursday is $95.18 per barrel, which is $0.46 (0.48) below the closing price of the previous session. According to the results of trading on Wednesday, these contracts fell in price by $2.2 (2.3%), to $95.64 per barrel.
The price of WTI oil futures for October on the electronic trading of the New York Mercantile Exchange (NYMEX) is currently $89.08 per barrel, which is $0.47 (0.52%) lower than the final value of the previous session. By the close of the market the day before, the value of these contracts decreased by $2.09 (2.3%), to $89.55 per barrel.
Pressure on the market is caused by fears of a downturn in the world economy against the background of tightening of monetary policy by the world’s largest central banks, as well as coronavirus restrictions in effect in China, according to the Bloomberg agency.
“Concerns about the state of the economy are a key reason for the decline in the oil market,” said WTRG Economics energy markets analyst James Williams, quoted by Market Watch.
“OPEC expresses concerns about demand prospects, and sometimes representatives of the cartel raise the question of reducing quotas. The possibility of a recession now occupies an important place in OPEC’s thinking,” the expert notes.
