Oil prices move higher, but set for weekly loss amid demand worries


Crude oil prices are expected to rise for the first session on Friday, although a weekly loss was expected as the market has tried to avoid concerns about the economic slowdown that could reduce demand.

Price action
  • Crude West Texas Intermediate for delivery in August CL00,
    + 1.31%

    CL.1,
    + 1.31%

    CLQ22,
    + 1.31%

  • CL.1, 1.00% CL00, 0.99% CLQ22, 1.00% rose $ 1.35, or 1.3% to $ 105.62 a barrel. The contract fell 1.8% to settle on Thursday at $ 104.27 a barrel on the New York Mercantile Exchange. Under the previous month’s contract, prices ended at their lowest level since May 10, according to Dow Jones Market Data.

  • First of August Brent crude BRN00,
    + 1.14%

    BRNQ22,
    + 1.18%,
    the world benchmark rose $ 1.30, or 1.1%, to $ 111.35 a barrel, after falling 1.5% to $ 110.05 a barrel on ICE Futures Europe, the lowest since May 18th.

  • Back to Nymex, July gasoline RBN22,
    + 1.03%
    rose 1% to $ 3.805 a gallon while August HOQ22 diesel,
    + 0.21%
    it was stable at $ 4,219 a gallon.

  • Natural gas July NGN22,
    + 0.22%
    it dropped slightly to $ 6.236 per million British thermal units, the lowest since April 6th.

Market drivers

US crude has fallen 2.2% during the week since Thursday, while Brent has fallen about 1.4%. The loss of ground for the commodity is partly tied to the concern that aggressive rises in Federal Reserve rates would slow economies, curbing demand for the commodity.

But oil continued to bullish U.S. stock futures on Friday, with gains from an emerging view that Fed rate hike ambitions will be dampened by a recession.

“Prices have fallen despite continued indications that the crude oil market and, above all, the market for fuel products remains very tight, the latter standing out through the margins of refineries almost record, which would have fallen if demand it would have shrunk, ”said Ole Hansen, head of commodity strategy. at Saxo Bank, in a note to customers.

“In the short term, we will see a battle between macroeconomic-focused traders, who sell oil as hedging against the recession, and the physical market where price adjustment remains,” he said in a note to customers.

Energy Information Administration inventory data, initially scheduled for Thursday, has been delayed due to “systems problems.” The government agency says it will release the backlog data as soon as possible, but for now, it has set the release date of the weekly oil state report as “TBD” to be determined.



Source link

Leave a Reply