Sunday, May 28, 2023

Texas oil falls 1.44% to US$73.27 a barrel

He price of the barrel of intermediate oil of Texas (WTI) It opened this Thursday with a drop of 1.44% and stood at US$73.27 a barrel, after Russia ruled out cuts from oil countries at the next OPEC+ meeting, as Saudi Arabia had suggested.

At 09:00 local time (13:00 GMT), the contracts WTI futures for July delivery lost US$1.07 compared to the close of the previous day.

Russia’s Deputy Prime Minister, Alexander Novak, in charge of his country’s negotiations in the alliance OPEC+does not expect new decisions at the next ministerial meeting of the countries of the Organization of Petroleum Exporting Countries (OPEC) and its partners on June 4.

“It will be the first face-to-face meeting in six months. We are waiting, as usual, for an assessment of the situation in the market. But I don’t think there will be any new measures, because just a month ago certain decisions were made regarding the voluntary reduction of production by some countries due to the slow pace of recovery of the World economy“, he said in an interview with the newspaper Izvestia.

In the previous meeting, the oil cartel announced a reduction of 1.6 million barrels per day that began in May and caused the price of crude to skyrocket.

He raw It has been getting more expensive for two days after the Saudi Arabian Energy Minister, Abdelaziz bin Salmán, warned energy market speculators to “be careful” or “hurt” themselves.

The minister referred them to the next OPEC+ meeting, on June 4, which some analysts they have interpreted as a suggestion that the cartel could announce further production cuts.

Likewise, yesterday the announcement of the US Energy Information Administration also contributed to its rise, which reported a weekly drop of 12.5 million barrels in crude oil inventories, the highest figure since the beginning of the year, and decreases in other products such as gasoline.

The drop in reserves, which are at a historically low level, is known a few days before the start of the summer road trip season in the US, in which the demand for fuel increases.

“There was a massive 12.5 million-barrel drop in commercial oil stocks last week, nowhere near the 700,000-barrel rise analysts had anticipated and almost double the estimate the US had offered a day earlier. American Institute of Petroleum”, said analyst Tom Essaye today in his daily report.


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