Thursday, September 21, 2023

Texas oil opens with a drop of 0.81% and falls below US $ 80 again

The price of the barrel of Texas intermediate oil (WTI) opened down 0.81% to US$79.74 a barrel, thus returning to below US$80 for the second time this week.

At 09:00 local time, WTI futures contracts for September delivery were asking $0.65 compared to the previous day’s close.

Everything indicates that this week the reference crude The US will break its seven-week upward streak, a period in which it achieved a rise of more than 20%.

The reason for this week’s drop is linked to worse-than-expected economic data in Chinathe world’s largest oil importer and second largest oil consumer.

Another factor that negatively affects the value of the black gold it is the concern on the part of investors that the US Federal Reserve will raise interest rates further in its fight against inflation.

“Looking ahead, there are many moving pieces and influences in the oil market, as Saudi Arabia and the OPEC+ They have reiterated their commitment to support the world oil market, but US production has begun to increase significantly in recent weeks, ”says Tom Essaye this Friday in his analysis of The Sevens Report.

Essaye also points out that when it comes to demand, “The economy is still very resilient.”

“For now, the benefit of the doubt falls to the bulls after last week’s rally to fresh 2023 highs, but longer-term oil is likely to end this year below current levels,” the trader concludes. expert.


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