Oil closes lower, but with weekly advance of 1%

May 20, 2022 | 2:55 p.m.

Los oil prices they closed lower, however, marked their fourth weekly advance, given that the market is still caught between problems of supply and demand; in addition to the fact that greater losses were observed in the prices of gas natural.

June oil contract United States WTI it fell 0.2% to $111.44, with a weekly advance of 1%; Meanwhile he North Sea Brent for July delivery fell 0.2% to $112.02 a barrel, up 0.8% for the week, according to data from MarketWatch.

On the other hand, the June contract gas natural it decreased 0.7% to $8.30 per million British thermal units. The price of natural gas was under pressure, but still clung to a weekly gain of almost 4%.

Crude oil remains range bound, caught between focusing on tight monetary policy fueling an economic slowdown and a tighter global fuel products market.

Ole Hansen, head of commodity strategy at Saxo Bank, told MarketWatch.

He added that this is a situation that could worsen once China managed to lift the lockdowns by COVID-19 that have hit its economy and reduced the demand for basic products in general.

Crude oil received a boost earlier in the week, after the world’s largest oil importers began to ease the closure of Shanghai.

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China cuts lending rate

According to Hansen, Asian stock markets and US stocks received a boost on Friday morning after China’s central bank lowered your rate of five-year loans, but even amid a slower economic growth outlook, oil prices remain supported.

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China’s import of cheap Russian crude rose to a three-month high in April as the country sent about 2 million barrels a day of crude into storage tanks.

determined.

The aforementioned tightness in global fuel products will support prices, which are already at record levels around the world, ahead of the summer driving season, he added.

Keep reading: Pemex crude oil reserves are far from reaching the levels reported in the previous two six-year terms

With information from MarketWatch

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