Oil ended this Tuesday (22) in decline, with investors attentive to the position of the European Union (EU) on possible embargoes on Russian production of the energy commodity, in addition to advances in the negotiations of the nuclear agreement between global powers and Iran.
Also on the radar was the situation of the Covid-19 outbreak in China, which forced Beijing to tighten restrictions in some regions of the country.
On the New York Mercantile Exchange (Nymex), WTI crude for May closed down 0.64% ($0.70) at $109.27, while Brent crude for the same month fell 0. 12% ($0.14) on the Intercontinental Exchange (ICE) at $115.48.
“Oil bulls have once again gained the upper hand in the market in anticipation of US President Joe Biden’s visit to Brussels and a possible announcement of EU accession to Russia’s oil import embargo, but China is lurking with the risk of a drop in demand”, summarizes Rystad Energy, in a report sent to customers.
The meeting between Biden and leaders of the bloc, which will take place next Thursday (24), could result in Europe taking tougher measures on Russian energy production, although the Old Continent has not committed to adhering to import bans, highlights the consultancy.
Today, the White House said the American president will not pressure his European counterparts to cut
Among EU leaders who oppose the idea, German Chancellor Olaf Scholz said sanctions against Moscow must be “tolerable” for the economies that apply them. “That’s why Germany’s position on this issue of an energy boycott remains unchanged,” he said.
In contrast to speculation about Russian energy embargoes, progress in negotiations for the resumption of the nuclear deal with Iran weighed on oil contracts, as Iranian oil would be released to the market if the pact is re-established. On Tuesday, the Ayatollah – sort of the highest religious authority – of Iran, Ali Khamenei, expressed support for the agreement.
Towards the end of the session, the announcement that TotalEnergies would leave its Russian business again supported the contracts, which rose again, but only momentarily.
Source: CNN Brasil
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