Friday, September 29, 2023

Texas oil closes up 1.2% to US$75.75 a barrel

The price of Texas intermediate oil (WTI) closed this Wednesday with a rise of 1.2%, overcoming the psychological barrier of US$75 and standing in the $75.75 a barrel, after the announcement that the inflation rate in the United States fell one point in June, to 3%, reaching its lowest level since before the pandemic.

At the close of business on the New York Mercantile Exchange (nymex), WTI futures contracts for delivery in August totaled US$0.92 compared to the previous day.

The US black gold closes for the second consecutive day higher, after yesterday’s gain of 2.53%, after the International Energy Agency (AIE) pointed out in its latest report that global crude oil inventories are going to fall in the next 15 months, although a foreseeable lower demand will cause the rise in prices to moderate.

US inflation has fallen for twelve consecutive months since, in June 2022, it broke its record for the last forty years by standing at 9.1%.

The rises of interest rates approved since then by the Federal Reserve (Fed), as well as cheaper energy, have allowed the inflation rate in the United States to now stand at pre-pandemic levels and at its lowest rate in two years.

The investors They expect these new data to influence the Fed’s policy of raising interest rates, which raises fears of a possible recession.

However, many analysts have warned that the US central bank’s goal is for inflation to stand at 2%.

In an ING analysis today, the bank says that despite the fact that “the inflationary pressuress in the US show more general signs of moderation (…), the Federal Reserve seems determined to go ahead with a rate hike in July”.

However, the bank notes that “the need for further tightening thereafter is questionable.”

For the Sevens Report analyst, Tom Essayethe oil trend is bullish in the short term, although it warns of fears of a recession based on the interest rate hike policy of the United States Federal Reserve (Fed).

On the other hand, natural gas futures contracts for August were down US$0.09 to US$2.63, and gasoline futures due the same month were up US$0.04 to US$2.66.


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