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Oil recovers, inspired by American demand for diesel

Closing price: Oil prices recovered on Wednesday, supported by the rebound in demand for diesel in the United States, but firm communication from the American central bank (Fed) calmed the trend.

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 won 0,27%to close at 73,39 dollars.

Le 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.) American with deadline in January took him 0,71%has 70,58 dollars.

For Matt Smith of Kpler, operators were sensitive to the increase in 30% volumes of distilled products, a category which includes diesel, delivered to the US market last week compared to the previous period.

A 4.5 million barrels per day, demand for diesel is at its highest in two and a half years, according to figures published Wednesday by the American Energy Information Administration (EIA).

Although seen as a positive signal of the appetite for refined products, this surge is misleading, according to Matt Smith, because it is linked to the strong activity in road, rail and maritime freight before the holiday period.

In addition to distilled products, speakers noted from the EIA report the acceleration of exports (+58%), which had not reached this level for almost five months.

These two indicators took precedence, in the minds of operators, over the slowdown in refinery activity, which used 91,8% of their abilities against 92,4% during the previous period.

However, the momentum given by the EIA report was moderated by the communication from the American central bank (Fed), made at the end of the session.

The Fed 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.

This is a new phase and we will be cautious about future rate cuts“, warned the president of the institution, Jerome Powell, during his press conference.

This strengthening of US monetary policy suggests less favorable financial conditions than expected next year, which could affect consumption and demand for oil.

(c) AFP

Commenter Oil recovers, inspired by American demand for diesel

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