Oil prices finally moved with losses today, erasing the day’s initial gains after the EU agreed to an adjustment of its sanctions that will allow Russian exports to third countries.
In particular, his September contract Brent which at the high of the day had reached up to 105.72 dollars per barrel, finally closed at 103.86 with a fall 0.6% or $0.61.
On a weekly basis, however, the contract strengthened by 2% from last Friday’s close of $101.16.
However, the position of the most active Brent contract has now been taken by the October one, which moved with losses 1.1% closing at $98.38 the barrel.
The pressures were greater on the American one WTI September, which completed its transactions in 94.7 dollars the falling barrel 1.7% or $1.65, while during the day it had reached up to $97.95.
On a weekly basis, the WTI September contract closed approx 3% lower than the previous Friday’s 97.59, which however related to the August contract that expired on Wednesday.
In the main news of the day, which appeared to lead to a change of sign in the contracts, the EU clarified that the state-owned Russian Rosneft and Gazprom will be able to continue exporting oil to third countries in order to limit risks to global energy security.
“In the short term it’s definitely negative news (for oil), which probably gave us a little bit of a selloff today,” noted Phil Flynn, analyst at Price Futures Group.
The EU announcement comes in the wake of the statement made earlier by the governor of the Central Bank of Russia, Elvira Nabiulina, that Russia will not supply oil to countries that decide to put a ceiling on its price.
Further pressure on prices was data that showed business activity in both the US and Europe fell to a multi-year low, according to S&P Global’s preliminary PMI.
But despite growing negative signs of a global economic slowdown that will hurt energy demand, extremely tight supply continues to support prices.
However, fears over global crude supplies have eased slightly after Libya restored production at several fields during the week.
But as UBS’s Giovanni Stauvono comments, “Libyan production is recovering, but with the conflicts in the capital, no one knows how long this recovery in production will last.”
In any case, WTI has taken a beating in the past two sessions after data showed US gasoline demand has fallen nearly 8% since last year due to record prices at the pump, even as we enter the peak summer driving season. .
Instead, signs of strong demand in Asia supported global benchmark Brent, putting the contract on track for its first weekly gain in six weeks.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
