Connect with us
  • tg

Commodities

Oil futures prices are getting cheaper, but the rate of decline is gradually slowing down

letizo News

Published

on

A separate cause for concern is the supply of Russian oil to world markets. Oil futures prices today continue to decline amid concerns about the recession and the news about the restoration of production in Libya.

On July 22, 2022, the price of Brent oil futures for October at the London Stock Exchange ICE Futures decreased by 1.11%, to $98.38/barrel. The price of October oil futures of the Brent brand on the London ICE Futures exchange decreased by 1.11% to $98.38/bbl.

Oil futures WTI for September at electronic trading on the New York Mercantile Exchange (NYMEX) fell by 1.71%, to $94.70/bbl. The price went down by 1.71% to $94.70 per barrel. Brent crude oil went down in price by 2.15% and WTI crude oil – by 2.75%.

Crude Oil Futures: Oil Continues to Decline on July 25, 2022

But the rate of decline is gradually slowing. The price of October oil futures for Brent on ICE Futures fell by 0.92%, to $97.47/bbl. The price of October oil futures of Brent on ICE Futures decreased by 0.92% to $97.47 per barrel. On electronic trading, NYMEX crude oil futures WTI for September fell by 0.89% to $93.86/barrel. US dollars per barrel.

U.S. natural gas futures are near $8.2/bbl. USD/mln Btu (USD 294/1000 m3). On July 22, 2022, natural gas futures for September on the NYMEX rose 4.86% to $8.195/million Btu. USD/mln Btu.

On July 25, 2022, quotes rose 0.65% to $8.248/million Btu. On July 25, 2022, quotes rose 0.65% to $8.248/million Btu. Gas quotations in Europe are holding above $1,700/mln Btu. USD/1000m3. August gas futures on ICE Futures’ TTF hub in the Netherlands were trading at 164.9 Euro/MWh (USD 1763.8/1000m3) by 11:30 Moscow time on July 25, which was 3.15% higher than the previous day’s settlement price.

Oil futures prices start new week with decline 

Oil futures prices start the new week lower on another wave of recession fears and reduced supply worries. The U.S. Federal Reserve (Fed) will meet on July 26-27, 2022 and expect another 75 bps hike in the benchmark interest rate.

A serious tightening of the Fed’s monetary policy, according to many experts, could lead to a recession in the U.S. economy.

The head of the U.S. Treasury D. Yellen, in an interview to TV channel NBC on July 24, admitted that the U.S. economy is slowing down, while denying the recession.

Д. Yellen said that the economy is slowing down against a background of strong recovery growth in the post-pandemic period – in 2021, the U.S. economy grew by 5.5%. According to the minister, the economy is not in a period of recession, but in a period of change; when growth slows down, it is necessary, and appropriate to the situation.

According to the U.S. Department of Commerce, the U.S. economy in the 1st quarter of 2022 decreased by 1.6% in annual terms, and expert estimates indicate that the decline continued into the 2nd quarter of 2022. Thus, the decline lasted for the 2nd consecutive quarter, which is considered the definition of a technical recession.

The market paid attention to data from Libya

National Oil Corporation (NOC) on July 23, 2022 reported that after the lifting of the force majeure on the fields and export ports, daily production increased from 560 kbpd as of July 11 to 860 kbpd as of July 22. Within 2 weeks, NOC plans to increase its oil production to 1.2mbpd.

The growth of active rigs in the USA continues to slow down

According to Baker Hughes, the number of active oil and gas rigs in the US rose by 2 units to 758 in the week ended July 22, 2022. The number of active oil rigs remained unchanged at 599.

The number of gas rigs increased by 2 units to 155. The number of multifunctional rigs remained unchanged at 4.

Separate cause for market concern are Russian oil supplies to the world market

On July 21, 2022, the EU adjusted the sanctions regime against Russia, allowing Russian state companies to supply oil to third countries to limit the risks to global energy security.

However, the market sees risks to Russia’s oil supply due to the US and G7 plans to set ceiling prices for Russian oil by December 2022.

Russia may stop supplying oil to countries that will introduce a price ceiling for Russian oil, which will provoke a rise in global prices.


Commodities

Brent oil prices could reach $150 per barrel, says JPMorgan

letizo News

Published

on

Brent oil prices could reach $150 per barrel, says JPMorgan
© Reuters.

In a recent forecast, JPMorgan has predicted a potential surge in prices to $150 per barrel. This prediction was made on Monday, as the financial institution observed escalating oil rates that have been on a consistent upward trajectory.

The bank’s forecast reflects the ongoing trend in the global oil markets where prices have steadily increased. The price of Brent oil, a benchmark for international prices, has been rising consistently, indicating a robust demand and tightening supply.

This prediction by JPMorgan comes amid a global economic recovery from the pandemic, which has seen an uptick in energy consumption across various sectors. The consequent rise in demand for oil and other energy commodities is putting upward pressure on their prices.

JPMorgan’s forecast is one of several indicators pointing towards a bullish trend in the global oil market. However, it remains to be seen how this potential surge will impact the broader economy and whether it will sustain over the long term. For now, investors and market stakeholders will be closely watching these developments in the oil markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Continue Reading

Commodities

Gold prices hold steady amid Federal Reserve’s interest rate warning and global economic concerns

letizo News

Published

on

Gold prices hold steady amid Federal Reserve's interest rate warning and global economic concerns
© Reuters.

Gold prices remained mostly steady on Monday, despite the potential for a further drop due to warnings from the Federal Reserve about prolonged higher interest rates. The strength of the dollar and yield pressures have also contributed to the situation. Over recent weeks, gold has shown minimal fluctuation in its trading range.

The Federal Reserve recently signaled that interest rates could rise again this year and may decrease less than previously anticipated in 2023, possibly remaining above 5%. This has caused investors to favor the dollar as a safe haven, as global economic conditions appear to be worsening.

Inflation is resurging in major economies due to rising oil prices, which could potentially hamper growth this year. Amid these circumstances and growing concerns about a possible U.S. government shutdown, gold has found some support.

Meanwhile, on Monday, industrial metals saw little movement due to escalating worries about additional economic challenges in China. The London Metal Exchange (LME) and nickel finished last week on a lower note. These concerns were amplified after China Evergrande (HK:) Group, a struggling property developer, announced it could not issue new debt due to an ongoing government investigation into one of its units.

China’s property sector is facing a cash crunch that has persisted for three years and has received limited fiscal support from Beijing. This week, attention will be focused on Chinese purchasing managers’ index data, scheduled for release on Friday, for further insights into business activity.

Oil prices rose on Monday as investors shifted their attention back to tighter supply outlooks. This shift occurred after Moscow implemented a temporary ban on fuel exports while remaining wary of potential further rate hikes that could dampen demand.

contracts ended their three-week winning streak and fell last week following the Federal Reserve’s hawkish stance which unsettled global financial sectors and raised concerns about oil demand. Prices had surged over 10% in the preceding four weeks due to predictions of a significant crude supply deficit in the fourth quarter, following Saudi Arabia and Russia’s decision to extend additional supply cuts until the end of the year.

Last week, Moscow temporarily banned gasoline and diesel exports to most countries in an effort to stabilize its domestic market. More updates on stock market trends and other business, political, tech, sports, and auto news are expected to follow.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Continue Reading

Commodities

Oil prices steady as Russia eases fuel export ban

letizo News

Published

on

Oil prices steady as Russia eases fuel export ban
© Reuters. FILE PHOTO: Pumpjacks are seen against the setting sun at the Daqing oil field in Heilongjiang province, China December 7, 2018. REUTERS/Stringer

By Paul Carsten

LONDON (Reuters) – Oil prices held steady on Monday after Russia relaxed its fuel ban, taking the edge off earlier gains on a tighter supply outlook and wariness over interest rates that could curb demand.

futures were up 17 cents, or 0.18%, at $93.44 a barrel by 1133 GMT after settling 3 cents lower on Friday.

U.S. West Texas Intermediate crude was up 7 cents, or 0.08%, at $90.10.

Russia approved some changes to its fuel export ban, lifting the restrictions for fuel used as bunkering for some vessels and diesel with high sulphur content, a government document showed on Monday.

The ban on all types of gasoline and high-quality diesel, announced last Thursday, remains in place.

“The market continues to digest Russia’s temporary ban on diesel and gasoline exports into an already tight market, offset with the Fed’s hawkish message that rates will stay higher for longer,” said IG Markets analyst Tony Sycamore.

Crude prices fell last week after a hawkish Federal Reserve rattled global financial markets and raised concerns over oil demand. That snapped a three-week rally of more than 10% after Saudi Arabia and Russia constrained supply by extending production cuts to the end of the year.

Last week, Moscow issued a temporary ban on gasoline and diesel exports to most countries to stabilise the domestic market, fanning concerns of low products supply as the Northern Hemisphere heads into winter.

In the United States, the number of operating oil rigs fell by eight to 507 last week – the lowest count since February 2022 – despite higher prices, a weekly report from Baker Hughes showed on Friday.

Compounding supply constraints, U.S. oil refiners are expected to have about 1.7 million barrels per day (bpd) of capacity offline for the week ending Sept. 29, decreasing available refining capacity by 324,000 bpd, research company IIR Energy said on Monday.

Offline capacity is expected to rise to 1.9 million bpd in the week ending Oct. 6, IIR added.

Expectations of better economic data this week from China, the world’s largest crude importer, lifted sentiment. However, analysts flagged that oil prices face technical resistance at the November 2022 highs reached hit last week.

China’s manufacturing sector is expected to expand in September, with the purchasing manufacturing index forecast to rise above 50 for the first time since March, Goldman Sachs analysts said.

Continue Reading

Trending

©2021-2023 Letizo All Rights Reserved