Oil reacted on Friday with a rise that moved around 4% and with which it managed to win the positive sign in a week that all indicated that it would be the first fall in the last four. Gasoline futures closed at record levels.
In particular, Brent’s July delivery contract added 3.8% the 4.10 dollars at a price of $ 111.55 the barrel.
Accordingly, the June delivery contract of the American WTI was strengthened by 4.1% the 4.36 dollars and closed at $ 110.49 the barrel.
In weekBrent gained 0.8% and WTI 0.7%.
June delivery rose 16.61 cents, or 4.4 percent, to close at $ 3.9578 a gallon, a record high of more than 5 percent a week.
“Gasoline is moving in the wrong direction for the consumer. The price of gasoline is an all-time record for pump and futures,” said Robert Yawger, chief executive of Mizuho Securities.
The Energy Information Administration announced on Wednesday that gasoline inventories fell by 3.6 million barrels against a forecast of 1.9 million barrels, while spirits fell by 900,000 barrels, compared to expectations for a decline of 1.6 million barrels. Gasoline crack spreads exceeded $ 55 a barrel during the session, Yawger added.
The tone of the market this week was given by the possibility of imposing a European embargo on Russian oil, but as the days go by, this option seems to be moving away at this stage.
According to Bloomberg sources, some EU countries believe that it may be time to leave that plan for later and proceed with the rest of the new package of sanctions, unless Hungary is persuaded to support the embargo.
At the same time, expectations seem to be renewed for Iran to return to world production, with European Union Foreign Minister Josep Borrell saying that the EU nuclear coordinator’s trip to Tehran unblocked the situation after two months of stalemate.
“Let’s say that the negotiations have been blocked and have been unblocked, which means that there is a prospect of reaching a final agreement,” Borel said, adding that “these things cannot be resolved overnight.”
Elsewhere, Beijing authorities have denied rumors of a lockdown in the city despite rising cases. Concerns about demand levels in China, in the context of the impact on the country’s economic activity of the extensive lockdowns in Shanghai and other cities, were the main reason for the two-day dip in prices earlier in the week.
More generally, however, persistent inflation and interest rate hikes by central banks around the world continue to plague investors.
According to Stephen Brennock of PVM Oil, “the roller coaster course shows no signs of stopping”, explaining that on the oil front and the wider range of risk assets, fears are growing about an impending global recession led by inflation.
Source: Capital
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