Crude oil prices turned down again, after they had risen in the beginning of today’s trading, Monday, May 29, 2023, supported by US President Joe Biden and House Speaker Kevin McCarthy reaching a preliminary agreement on the debt ceiling in the United States, which would To protect the country with the largest economy in the world, and the largest consumer of oil in the world, from faltering.
Brent crude futures prices fell, in the middle of trading, after rising by nearly 1% in the first hours, in conjunction with expectations and concerns about raising interest rates again by the US Federal Reserve, which limited the gains, according to what was published by Reuters.
Crude oil prices fell during the past week, ending on May 26, recording their lowest level during the month, although they rose by 1% at the end of it, according to information obtained by the specialized energy platform.
Crude oil prices today
By 12:10 pm GMT (3:10 pm Mecca time), Brent crude futures – for July 2023 delivery – turned down by about 0.3%, to $ 76.72 a barrel.
US West Texas Intermediate crude futures also fell, by about 1%, to record about $72.54 a barrel, according to data seen by the specialized energy platform.
The rise came at the beginning of transactions, despite the calmness of oil trade, today, Monday, May 29, due to holidays in the United Kingdom and the United States, but it rebounded with the agreement of US President Joe Biden and House Speaker Kevin McCarthy, on Saturday, in principle to suspend the debt ceiling.
Senior officials in the United States had reached an agreement on suspending the US debt ceiling, amounting to about $31.4 trillion, in addition to limiting government spending over the next two years, an agreement that members of the Democratic and Republican parties will vote on.
Oil price analysis
CMC Markets analyst Tina Ting said the temporary debt deal triggered a rebound in risky assets; Including crude oil, explaining that the movement in crude oil prices was caused by the short-term debt deal, as monitored by the specialized energy platform.
Crude oil prices moved higher in the wake of the debt deal, which coincided with warnings from Saudi Energy Minister Prince Abdulaziz bin Salman to oil traders against betting that prices will decline, a warning that was taken as a sign that OPEC may announce a larger production cut during its meeting in June 4, according to Reuters.
At the same time, statements by officials and sources in the Russian oil sector indicate; Including Deputy Prime Minister Alexander Novak, the world’s third largest oil producer tends to maintain production at current levels.
Investors await manufacturing and services data from China, the world’s largest oil importer, this week, as well as US non-farm payroll data, due on Friday, for clues about economic growth and oil demand.
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