Oil futures contracts closed lower on Tuesday (26) after a session marked by volatility. Negative macroeconomic data in the United States put pressure on prices, which were further penalized by the news that Washington will release another round of reserves for the commodity.
On Comex, the metals division of the New York Mercantile Exchange (Nymex), WTI for September ended down 1.78% or $1.72 at $94.98, while Brent for October dropped 0.73%, or $0.73, to $99.46 on the Intercontinental Exchange (ICE).
The energy asset started the day in the blue, amid rising supply risks. The new cut in supplies from Russia to Europe strongly boosted the prices of natural gas, which helped to support other commodities.
“Gas rationing in Europe looks increasingly likely,” analyst Stephen Innes of SPI Asset Management said in a morning note. “Europe could potentially switch from gas to oil, which is pushing up Brent prices,” he added.
However, oil turned lower after the release of US indicators later in the morning. According to the Conference Board, the consumer confidence index in the country fell from 98.4 in June to 95.7 in July, well below the forecast of analysts consulted by The Wall Street Journal, of 97.0.
US pre-owned home sales fell 8.1% in June compared with May, at a seasonally adjusted annual rate of 590,000, according to seasonally adjusted data released today by the US Commerce Department.
In the afternoon, the White House said the US would sell another 20 million barrels of its oil reserves as part of efforts to stem the rise in prices. The news stalled an attempt to recover the asset.
In any case, analyst Edward Moya of Oanda predicts that the oil devaluation will be limited. “Despite increasing risks of a severe recession, oil is expected to have strong support at the $90 level in the short term,” he projects.
*With information from Dow Jones Newswires
Source: CNN Brasil
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.
