2023-05-03 13:20:44
bearish oil
Crude oil prices continued to record losses for the third consecutive session during trading today, Wednesday; Amid market anticipation for the release of oil inventories data for the United States, which is the largest consumer of crude oil in the world, which will be released today, in addition to growing concerns about slowing global economic growth amid the continuation of major central banks to tighten their monetary policy, led by the US Federal Reserve, which is likely to raise interest rates by 25 points. The basis for today’s meeting, and this in turn may increase the weakness of economic growth, thus weakening the demand for crude oil.
In terms of trading today, we find that Brent crude futures contracts fell by 2.68% and recorded about $73.48 per barrel. At the same time, the US West Texas crude contracts extended their losses by 2.70% and reached the level of $69.66 per barrel.
Crude oil prices were subjected to downward pressures during trading today, Wednesday, amid markets anticipating the release of US oil inventories data, which will be issued later today, which will reveal the volume of US consumption of crude oil, which will affect the crude oil markets, given that the United States is considered It is one of the largest consumers of crude oil in the world, which will necessarily be reflected in the price of crude oil.
At the same time, crude oil prices fell sharply during today’s trading, in light of growing concerns about weak global growth, due to the continuation of major central banks to raise interest rates, which put pressure on the global economy and increase its vulnerability to recession, and in this regard, the date of the committee meeting is approaching. The monetary policy of the US Federal Reserve, which is likely to raise interest rates by 25 basis points, in light of the country’s exposure to banking crises, which led to the collapse of the third US bank, and this would weaken the demand for crude oil in the markets, which would increase its exposure to heavy losses.
On the other hand, we find that oil prices found some support that prevented their collapse, as a result of Iran’s seizure of an oil tanker in the Strait of Hormuz, according to the US Navy, especially after it seized last week the oil tanker of the Chevron Company, amid broader tensions between Tehran and the United States, This raised concerns about a possible shortage of oil in the market, which supported oil price levels.
With regard to other energy prices, gasoline contracts fell by 2.12% and reached $2.3841 per gallon. Also, natural gas contracts recorded a decrease of 1.58%, to record about $2.179 per million thermal units. Likewise, heating oil contracts recorded a sharp decline of 2.27%, and settled near $2.2373..
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