2023-07-24 19:24:00
The price of a barrel in New York ended on a climb of 2.16% to 78.74 dollars, after crossing 79 dollars during the session. Brent ends on its side on a rise of 2.05% to 82.74 dollars.
Oil prices continued their rise on Monday, which began about a month ago, boosted by the prospect of permanently lower supply than demand, accentuated by the shutdown of a refinery in Louisiana.
The price of a barrel of Brent from the North Sea for September delivery rose 2.05%, to close at 82.74 dollars.
As for the barrel of American West Texas Intermediate (WTI) of the same maturity, it gained 2.16%, to 78.74 dollars. In session, the WTI reached 79.28 dollars, not far from the symbolic threshold of 80 dollars, which it has not crossed since mid-April.
“Crude has been trending higher for almost a month,” “and today’s move is an extension of that momentum,” says Eli Rubin of EBW Analytics Group.
At the end of June, “analysts were already talking about bullish signals”, “but since prices had not moved for months”, operators were still reluctant to commit, according to the analyst.
Saudi Arabia’s production cut of 1 million barrels a day in July, along with the first tangible signs of a contraction in Russian exports, have ignited the fuse.
Macroeconomic indicators showing a slowdown in inflation and the new boost from Wall Street did the rest.
Today, “traders see oil as more attractive than US equities,” argues Eli Rubin, “and if WTI hits $80, that could take things even further.”
Prices were also boosted on Monday by the shutdown of an ExxonMobil refinery in Baton Rouge, Louisiana, which several US media reported.
According to the Bloomberg agency, the unit whose activity was suspended produced around 120,000 barrels of gasoline per day.
In response, the benchmark US gasoline futures contract took off more than 3.5% on Monday, to a height it had not seen in nearly nine months.
For Edward Moya, of Oanda, the oil heat stroke is all the more impressive as it comes against a backdrop of economic slowdown, as further illustrated by the PMI activity indices published on Monday.
Whether in Germany, France, the United Kingdom or the United States, activity in the manufacturing sector contracted in July.
But, for Edward Moya, these figures increase the probability of a near end to the cycle of monetary tightening on both sides of the Atlantic, which is seen favorably for the demand for black gold.
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