2023-05-08 19:35:00
Brent ended up 2.27% at $77.01 and WTI ended up 2.55% at $73.16.
Oil prices continued their rebound on Monday with a second session of marked gains, initiated by strong US employment figures and the prospect of a pause in monetary tightening from the US central bank (Fed).
The price of Brent crude from the North Sea for July delivery gained 2.27%, to close at $77.01.
That of the barrel of American West Texas Intermediate (WTI), with maturity in June, rose by 2.55%, to 73.16 dollars.
After falling to its lowest level in 17 months on Thursday, the black gold began its recovery on Friday thanks to the monthly US employment report, according to which 253,000 jobs were created in April, significantly more than the 180,000 expected by economists.
The market maintained its momentum on Monday, fueled in part by purchases by speculative traders, who had positioned themselves on the downside and fear a trend reversal, fueled by other traders, who are betting on the rise, according to Bart Melek of TD Securities.
“The signal for a pause (in the cycle of monetary tightening) from the Fed has made speculators come back a little,” explained the analyst, in a market that has regained some of its appetite for risk.
The halt in rate hikes should spare, in the minds of investors, consumption and demand for petroleum products, which operators feared would see suffocation.
And if the slowdown in the economy is confirmed, they expect to see the Fed begin to lower its rates in the short term, details Bart Melek, a prospect that encourages Wall Street to be optimistic.
“Market sentiment, technical trading and mixed signals on the fundamentals heighten crude volatility,” Eurasia Group analysts said in a note. “These swings are likely to continue until the numbers give a clear indication of demand and its robustness in the second half.”
The community is already debating the next ministerial meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies of the OPEC + agreement, which will however only take place in a month, on June 4.
“I don’t think they’re going to move, but I feel there’s going to be a lot of discussion around that,” anticipates Bart Melek.
The two surprise decisions in October and April, which saw cartel members agree to cut production by a total of 3.16 million barrels per day, cast an atmosphere of uncertainty in the market, which further increases price volatility.
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