Tuesday, May 21, 2024

Oil is clearly down as markets await the results of the US Federal Reserve meeting!



Crude oil prices fell sharply for a second straight day during trading on Wednesday, as expectations of a slowdown in the US economy strengthened amid market concerns over rising global demand for crude oil. US monetary policy is at a very strong pace to control high inflation.

During today’s trade, U.S. crude futures fell 1.38% to settle at $74.97 a barrel. At the same time, Brent crude futures fell 1.10% to settle at $81.98 a barrel.

Crude oil prices fell for a second day in a row amid market expectations that the results of the US Federal Reserve meeting will be released on Wednesday. This has a clear negative impact on US economic growth, leading to a decline in global demand for crude oil this year, especially as the US is one of the largest consumers of crude oil globally, with the US economy being the world’s largest.

International Energy Forum: Oil demand rises to its highest level in December 2022

At the same time, oil prices were hit by reports that Russia’s crude oil and fuel oil exports hit record levels as demand for cheaper Russian crude from Chinese refineries increased, among Russia’s total crude and fuel oil exports. According to Kepler data, China’s output was US$1.66 a million barrels a day last month, surpassing the previous record in April 2020 when the Asian country eased initial restrictions to combat the virus. Russian exports of conventional fuel oil and high-sulfur fuel oil to China hit a record high of around 142,000 barrels per day last January, and the rise may signal continued strength in Russian oil exports and weakness from the aftermath of Western sanctions. imposed on Russian oil.

In addition, crude oil markets await the release of US oil inventory data tomorrow, Wednesday, which always has a clear impact on price levels, giving a clearer picture of the strength of US demand for crude oil. The United States is one of the largest importers of crude oil in the world.

Novak clarifies Russia’s decision to cut its oil production

As for other energy sources, gasoline contracts fell 0.91% during intraday trading to settle at $2.3947 a gallon. Meanwhile, natural gas contracts fell, registering $2.135 per million thermal units. Also, heating oil futures were down 1.30% to settle around $2.7557.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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