Oil falls 2% as rate hikes and Russian flows remain strong |
HOUSTON, 30 January (Reuters) – Oil prices fell 2% on Monday as expected rate hikes by major central banks weighed on demand and Russia increased its losses as a result of its exports remaining strong.
Investors USA The Federal Reserve will raise interest rates by 25 basis points on Wednesday, while the Bank of England and Europe They expect the Central Bank to increase by half a point. Any deviation from this scenario would be shocking.
“We’re seeing risk-off sentiment from the rally over the past two weeks on the idea that higher interest rates will slow demand more quickly,” said Dennis Kissler, senior vice president of trading at BOK Financial.
March futures 1.76 per barrel of Brent oil dollars or 2.03% down to 84.90 dollars has been USA crude oil 1.78 dollars fell 2.23% to $77.90 a barrel – its steepest decline in nearly four weeks.
The market also Europe Despite the EU ban and the price ceiling imposed by the G7 on Ukraine’s intervention, strong Russia was under pressure with the indicators of supply. Both oil benchmarks recorded their first weekly losses of three last week.
Central bank apart from the meetings, the meeting of key ministers of the OPEC+ group, which consists of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, will also be in the spotlight on Wednesday.
Three OPEC+ representatives told Reuters on Monday that the OPEC+ panel meeting was unlikely to change production policy.
Saxo Bank“The ship is not in stormy seas right now,” says Ole Hansen, head of commodity strategy. So why shake something that doesn’t move?
Oil broker PVM said OPEC+ “could surprise markets with a small cut”, adding that it was unlikely to change its policy.
Oil on Monday morning prices It rose amid tensions in the Middle East after a drone attack in Iran and hopes that Chinese demand would increase.
Stefano Grasso, senior portfolio manager at 8VantEdge in Singapore, said that while it is not yet clear what is happening in Iran, any escalation there could disrupt the flow of crude oil.
Hopes of rising Chinese demand boosted oil in 2023. The world’s biggest crude importer vowed over the weekend to encourage a recovery in consumption that would support demand.
“Markets have largely priced in increased demand from China, so traders are waiting and watching for clear signs of demand easing,” Kissler said.
The state oil regulator is fierce in the next few days to the pipeline operators weather Traders were cautious about a blow to oil production and transportation in Texas after forecasts recommended securing equipment and facilities.
In the week to January 27, a preliminary Reuters poll showed USAcrude oil reserves will decrease by approximately 1 million barrels, gasoline reserves are expected to increase.
Reporting by Alex Lawler, additions by Swati Verma, Florence Tan and Emily Chow report; Edited by Emelia Sithole-Matarise, Bernadette Baum, Philippa Fletcher
Our standards: Thomson Reuters Trust Principles.
2023-01-31 04:41:18
Source – reuters
Translation“24 HOURS”