Friday, May 24, 2024

Oil price down 3% .. Brent crude $ 109


I stepped back Oil prices With more than 3% of trade on Monday, amid expectations of Russian-Ukrainian talks, it could reach an agreement to end the war.

Oil prices ended lower last week after diplomatic efforts to end the war in Ukraine intensified and US markets saw volatile trade amid volatility, creating markets for rising interest rates.

Oil prices today

08:03 AM GMT (11:03 AM Mecca time), futures pricesWest Texas Intermediate Crude Oil – April delivery – 3.65%, reaching $ 105.34 a barrel.

Future prices also fellBrent crude – May 2022 Delivery – 3.26%, $ 109 per barrel.

Brent actually lost 4.8% last week, and the WTI fell 5.7%, both of which recorded the biggest weekly decline since November.

This comes after the United States and its European allies considered banning Russian oil imports, after both agreements reached their highest levels since the beginning of the first week of 2008 due to supply concerns.

Both records have risen since Russia invaded Ukraine on February 24, and have risen nearly 40% so far this year.

Russian-Ukrainian talks

The Ukrainian and Russian negotiators are due to speak again via video conference on Monday, with both sides reporting progress on the talks.

After the weekend talks the negotiators gave their most convincing assessments, suggesting that positive results could come within a few days.

On Sunday, US Undersecretary of State Wendy Sherman said there were signs that Russia might be ready for substantial talks on Ukraine, while Ukrainian negotiator Mikhail Podoliak said Russia had “begun constructive talks.”

See also  OPEC Secretary General: Lack of Oil Investments Threatens Energy Security

The Russian invasion, which Moscow calls a “special operation,” has destabilized global energy markets.

Impact of sanctions on Russia

“Oil prices are likely to continue to fall this week as investors digest the impact of sanctions on Russia, and the parties are showing signs of a ceasefire,” said CMC markets analyst Tina Ding.

“As markets prepare for very low deliveries from February to early March, this week’s FOMC meeting will focus on monetary policy, which could further strengthen the dollar and put pressure on commodity prices,” Ding added.

The US Federal Open Market Committee meets March 15-16 to decide whether or not to raise interest rates.

U.S. consumer prices rose in February, leading to the biggest annual inflation increase in 40 years, and Russia’s war against Ukraine will accelerate further as crude oil and other commodities rise.

Interest rates

The US Federal Reserve is expected to start raising interest rates this week, which will put downward pressure on oil prices.

Oil prices usually move against the US dollar as more US activity makes goods more expensive for foreign currency holders.

The United States then banned imports Russian oil Britain has said it will phase it out by the end of this year.

Russia is the world’s largest exporter of crude and oil products, accounting for about 7 million barrels a day or 7% of global supplies.

Corona spread

“The situation between Russia and Ukraine is very fluid and the market will be sensitive to developments on this front,” said Warren Patterson, head of inventory research at ING.

See also  Oil prices rise by $ 6, and the EU discusses a Russian oil embargo

“Suggestions that the parties may be willing to negotiate prices will be somewhat influential,” he added. Reuters.

In addition, he noted, the rising corona cases in China raise concerns about the need because China has been experiencing the worst spread of goiter for more than two years. Shenzhen closed, and other cities see tougher restrictions.

China, the world’s largest importer of crude oil and the second largest consumer after the United States, is seeing an increase in COVID-19 cases as the contagious strain of Omicorn spreads to many cities, from Shanghai to Shenzhen.

Daily new case load numbers reached a two-year high with 1,437 new confirmed corona virus cases on March 13th.

Although the number of cases in China is much lower than in many other countries, the virus control situation prompted government officials in the affected areas to impose targeted closures, conduct mass inspections, close schools and halt public transport to quell the epidemic quickly. As much as possible.

Related topics.

Subscribe to the newsletter to receive the most important energy news.

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

Share post:


More like this

Cost-effective drilling: how to reduce operational expenses by smart equipment choices

Drilling costs affect the profitability and sustainability of oil...

Navigating the World of Cryptocurrencies: How to Choose the Best Crypto Wallet

In the digital age where cryptocurrencies are rapidly gaining...

Unlock the easiest way to get EU citizenship of Slovenia and Romania with Union Permits

Due to the nature of their immigration programs, Slovenia...

The Ultimate Guide to Men’s Facials in Dubai

In the bustling city of Dubai, where the sun...