The price of a barrel of oil decreased globally at the end of trading today, Thursday, February 2 (2023), with the rise of the US dollar.
Oil prices had risen earlier in the trading, as the OPEC + decision to extend production cuts helped calm fears of oversupply.
The global price of a barrel of oil today
At the end of the session, Brent crude futures prices – for April 2023 delivery – decreased by 0.8%, to reach $82.17 a barrel.
The price of US West Texas crude futures – delivery in March 2023 – fell by 0.7%, to $ 75.88 a barrel, according to data viewed by the specialized energy platform.
And she was Oil prices It ended its dealings, yesterday, Wednesday, February 1, with a decline of more than 3%, with the release of US inventories and the decision of the OPEC + coalition.
US interest rates
The Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday, but continued to promise “continued increases” in borrowing costs as part of its ongoing fight against inflation.
“The Fed’s hawkish assertions were met with growing skepticism from the markets, which saw a cautious leak of Jerome Powell acknowledging progress on the ‘anti-inflationary operation’ and that he was not concerned about easing financial conditions,” said IG Market Analyst Yip Jun Rong. Reuters.
“Inflation has eased somewhat, but remains high,” the US central bank said in a statement, an explicit acknowledgment of progress made in reducing the pace of price increases from 40-year highs recorded last year.
The US dollar index fell to its lowest level in 9 months, today, Thursday, as a reaction to the bets of raising weak interest rates, before rising later in the trading.
A weaker dollar usually makes oil priced in the greenback less expensive for holders of other currencies; What boosts demand, and vice versa.
OPEC meeting
The OPEC+ committee endorsed the oil producer group’s current production policy at a meeting on Wednesday, leaving production cuts agreed last year in place amid hopes of rising Chinese demand and an uncertain outlook for Russian supplies.
The OPEC + alliance agreed to reduce its production target by two million barrels per day, or about 2% of global demand, from November 2022 until the end of 2023 to support the market.
The price of a barrel of oil rose globally due to the ban imposed by the European Union, on February 5, on Russian refined products.
Diplomats said that the European Union countries will seek, tomorrow, Friday, an agreement on the European Commission’s proposal to set a ceiling for the prices of Russian oil products, after the decision was postponed on Wednesday amid divisions among the member states.
Last week, the European Commission proposed that the EU apply, starting from February 5, a price cap of $100 per barrel on premium Russian oil products such as diesel and a cap of $45 per barrel on discounted products such as fuel oil.
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