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Oil falls, weighed down by a more restrictive Fed

Washington: Oil prices fell on Thursday, weighed down by the cautious position displayed by the American Central Bank (Fed) on its future monetary policy, putting an end to the upward trend of the previous days.

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 lost 0,69%to close at 72,88 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.) American with maturity in January, of which it is the last day of trading, let go 0,95%has 69,91 dollars.

The market is “still digesting the fallout from yesterday’s Fed meeting” as well as “his intention not to reduce his support (…) for the American economy“, commented to AFP John Kilduff, analyst at Again Capital.

The Fed’s cautious stance, coupled with weak demand outlook and abundant supply” is a factor in falling prices on the oil market, explained 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.

According to John Kilduff, it does “no doubt” that the appreciation of the dollar weighs on the prices of black gold: an increase in the greenback makes the price of oil comparatively more expensive, because this raw material is exchanged in dollars on the markets.

In addition, the Secretary-General of the United Nations, Antonio Guterres, estimated on Thursday that there was a “glimmer of hope” in Syria after the fall of President Bashar al-Assad, overthrown by a coalition led by radical Islamists.

If these new Syrian forces really try to bring people together, to maintain the unity of the country (…) then Syria will have a chance (…) not to be dominated by a dictator“, also estimated the head of American diplomacy Blinken during a television program on the MSNBC channel.

These comments “have alleviated some of the fears that have arisen in the market recently“, notably “regarding Iran (…) and its ability to maintain its exports and circumvent sanctions“, Mr. Kilduff argued.

(c) AFP

Commenter Oil falls, weighed down by a more restrictive Fed

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