Follow me Oil prices Their recent decline came as US crude inventories rose to their highest levels since June, as well as the Federal Reserve expressing renewed concerns about inflation.
West Texas Intermediate crude fell to settle at $79 a barrel, the lowest closing price since mid-March. Prices also broke below the 200-day moving average, which has been a support level for more than a month.
A report from the Energy Information Administration showed that US crude inventories increased by 7.27 million barrels last week, registering the biggest jump since early February, more than the 4.91 million barrel increase expected by an industry group. Tuesday. This raises serious issues that also include the possibility of a truce that would reduce tensions in the Middle East. The price of oil rose last month to the highest levels since October after Iran’s unprecedented attack on Israel.
An unexpected rise
“The sudden increase in inventories in the EIA report surprised most traders,” said Dennis Kessler, senior vice president of trading at BOK Financial Securities, adding that he at the one time to… Higher interest rates at the Federal Reserve, and acceleration of liquidations After the price of crude entered the moving averages, “the buying trend in oil is losing its luster. “
The Federal Reserve keeps interest rates unchanged for the sixth time
While OPEC+ supply restrictions are also supporting prices, uncertainty about US monetary policy and weakness in fuel markets including diesel are adding to the headwind. Federal Reserve Chairman Jerome Powell said on Wednesday that US inflation remains very high, so interest rates are expected to remain high. Although Powell said the Fed’s next move would likely be absent Raise interest ratesHowever, uncertainty about when inflation will fall – and thus interest rates – is putting more downward pressure on markets.
Wednesday also falls on the Labor Day holiday in many countries, which means trading volumes were lower than usual.
2024-05-01 19:49:52
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