London: Oil prices are stable on Thursday, the cautious position displayed by the American Federal Reserve (Fed) on its future monetary policy putting an end to the upward trend of the previous days. Around 10:15 a.m. GMT (11:15 a.m. CET), the price of a barrel of Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. from the North Sea, for delivery in February, loses 0,04% has 73,36 dollars.
Its American equivalent, 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 setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.), for delivery in January, of which it is the last day of quotation, fall of 0,03% has 70,56 dollars.
“The Fed’s cautious stance, coupled with weak demand outlook and ample supply” is a factor in falling prices on the oil market, explains Ipek Ipek Ozkardeskaya, analyst at Swissquote.
On Wednesday evening, the Fed unsurprisingly lowered its key rate by a quarter of a point, but its members only plan two additional cuts in 2025, compared to four in September.
The cut in key rates favors growth and demand for crude, but expectations of a more restrictive monetary policy from the Fed next year “boosted the dollar“, remind DNB analysts, slightly compressing oil demand.
A rise in the greenback makes the price of oil comparatively more expensive because this raw material is exchanged in dollars on the markets.
Investors remain cautious about the tendency to invest in black gold in the longer term.
On the one hand, “the mixed outlook for Chinese demand and increasing production from countries outside the Organization of the Petroleum Exporting Countries and its allies (OPEC+)” are weighing down prices, estimates Ole Hvalbye of SEB.
But, on the other hand, the possibility of stricter sanctions on Iranian oil supplies with the imminent arrival of Donald Trump at the White House, “introduced an additional layer of uncertainty“, explains the analyst.
(c) AFP
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