Closing price: Oil prices ended higher on Monday, supported by the prospect of a first rate cut by the US Federal Reserve (Fed) and supply disruptions in Libya and the Gulf of Mexico. The price of a barrel of Brent BRENT Brent or North Sea crude is a variation of crude oil that serves as a reference in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for fixing oil prices. North Sea crude for delivery in November appreciated by 1.59%to close at $72.75.
The barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in determining the price of crude oil and as a raw material for oil futures contracts on the New York Mercantile Exchange (Nymex), the energy exchange specializing in energy.) American with maturity in October took 2.10%has $70.09.
???? For John Kilduff of Again Capital, the good performance of prices on Monday is partly due to the Fed rate cut expectationsWednesday, which should give some breathing room to the American economy and stimulate demand.
This factor has been accentuated by the fact that operators now favour the hypothesis of a reduction of half a point and not a quarter of a point.
???? This recalibration has undermined the dollar, which is favorable to prices. because black gold trades are most often denominated in this currency, recalled Susannah Streeter of Hargreaves Lansdown in a note.
???????? The market also observed that production from American offshore platforms in the Gulf of Mexico remained more than 10% lower on Monday 12% to its usual level, after the passage of Hurricane Francine, according to the Office of Safety and Environmental Protection (BSEE).
“Given the current price level, there is no rush to restart all the installations.“, commented John Kilduff.
???????? Still on the supply side, operators noted the lack of progress in the standoff between the national unity government in Libya and that of Benghazi, which is not recognized by the international community.
To protest against what he considers to be a takeover of the Central Bank of Libya (BCL) by Prime Minister Abdelhamid Dbeibah, head of the national unity government, Benghazi has caused the suspension of most of the country’s oil production.
Talks have been initiated by the UN, but so far without any concrete results, three weeks after the start of the blockade.
“The market had been a little relieved to see export volumes increase last week, but we are back to square one.“, explained John Kilduff.
???????? Despite the rebounds on Wednesday, Thursday and Monday, stakeholders still describe a demand-driven market, which continues to be a concern, particularly in China.
Indicators released on Saturday showed a sharp slowdown in retail sales in August, a rise in the unemployment rate and a deceleration in industrial production.
Comment Oil rises, helped by upcoming rate cut
Community barrel price
