Xinhua News Agency, New York, December 5th: Summary: Worries about US monetary policy lead to a significant drop in international oil prices
Xinhua News Agency reporter Liu Yanan
As the US macroeconomic data caused market concerns about the Fed’s tightening monetary policy, international crude oil futures prices fluctuated in a wide range on the 5th, turning from a significant rise to a significant decline.
As of the close of the day, the price of light crude oil futures for delivery in January 2023 on the New York Mercantile Exchange fell by US$3.05 to close at US$76.93 a barrel, a decrease of 3.81%; the price of London Brent crude oil futures for delivery in February 2023 It fell $2.89, or 3.38%, to settle at $82.68 a barrel.
The Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing countries held a ministerial meeting on the 4th and decided to maintain the established production reduction target unchanged. This decision was in line with market expectations and did not cause a significant market reaction.
Ann-Louis Hittle, vice president of macro oil market research at Wood Mackenzie Consulting, believes that in view of the fact that the European Union has imposed an embargo on Russia’s seaborne crude oil exports from the 5th, the G7 has also imposed a price cap on Russia’s seaborne oil exports. , The market is full of uncertainties and a strong wait-and-see atmosphere. The decision of the major oil-producing countries is not surprising.
Vladimir Zornov, a market analyst at the US foreign exchange empire network, said that the latest decision of oil-producing countries has little impact on the market. The market may be waiting for further information on the imposition of price caps on Russian oil by Western countries.
At the same time, the U.S. non-agricultural employment data and service industry sentiment index for November showed that the U.S. economy is still relatively strong, and the market’s optimistic expectations for the Fed to slow down interest rate hikes have been frustrated.
According to data released by the Institute of Supply Management on the 5th, the service industry sentiment index in the United States in November was significantly higher than market expectations. Market concerns about the Fed’s continued tightening of monetary policy have intensified, leading to lower prices for risky assets, including crude oil futures.
Phil Flynn, a market analyst at Price Futures Group in the United States, said that anxiety over the Fed’s monetary policy has shrouded the market, and Western restrictions on Russia and OPEC’s production decisions have attracted less attention.
Manish Raj, chief financial officer of Verandra Energy in the United States, said that the Fed’s continued interest rate hikes may curb oil demand. At the same time, after the European Union imposed an embargo on Russian crude oil exports by sea, new orders from Asia will replace expired orders from Europe, and Russian oil exports are not expected to decrease.
(Editor in charge: Zhu Xiaohang)