2023-05-06 09:23:20
Oil prices rise ahead of interest rate hike decisions, due to fears of the banking crisis and inflation in the United States, and fears of a decline in oil demand.
-
Brent crude recorded $75.30 a barrel, and US West Texas Intermediate crude increased $2.78 to reach $71.34 a barrel.
Oil prices rose, yesterday, Friday, and incurred a third consecutive weekly loss, after recording a sharp decline earlier in the week, ahead of decisions to raise interest rates from major central banks.
Brent crude closed up $2.80, or 3.9%, at $75.30 a barrel. US West Texas Intermediate crude increased by $2.78, or 4.1%, to reach $71.34 a barrel at settlement, after it fell over four days to its lowest level since late 2021.
Brent crude ended the week down about 5.3%, while West Texas Intermediate crude plunged 7.1%, even though they rebounded on Friday.
The two benchmarks fell for three consecutive weeks for the first time since November 2022
“Crude is trying to reverse the recent low price trend caused by high interest rates and concerns about recession, especially in the banking sector,” said Dennis Kessler, senior vice president at BOK Financial.
While some analysts believe that the fundamental factors in the present market are stronger than what is indicated by the futures market
A better-than-expected US jobs report helped allay fears of an imminent recession, which was partly caused by renewed banking concerns. While investors widely expect the Federal Reserve to temporarily stop raising interest rates at the next June monetary policy meeting.
And it was Bloomberg The American said that American banks are currently finding themselves in an impossible situation to overcome, after the financial crisis of 2008.
Also read: The largest bank bankruptcies since the 2008 crisis.. “SVB” shakes the US banking sector
In the context, factory activity in China contracted unexpectedly in April with a decline in orders, and in light of the impact of the manufacturing sector on weak domestic demand.
But expectations of possible supply cuts during the next meeting of the “OPEC +” group of producing countries in June provided some support for prices, said Kelvin Wong, senior market analyst at OANDA in Singapore.
1683390408
#Oil #prices #rising #sharp #decline #due #interest #rate #hike