The price of a barrel of oil rose globally, during today’s trading, Thursday, February 2 (2023), trying to compensate for the losses it suffered during the previous session.
The decline in the US dollar restored some appetite for risky assets, and the OPEC + decision to extend production cuts helped calm oversupply fears.
The global price of a barrel of oil today
By 07:19 a.m. GMT (10:19 a.m. Mecca time), the prices of benchmark Brent crude futures – for delivery in April 2023 – rose 0.69%, to reach $83.41 a barrel.
The price of US West Texas crude futures – delivery in March 2023 – fell by 0.75%, to $76.98 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 its target interest rate 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.
A weaker dollar usually makes oil priced in the greenback less expensive for holders of other currencies; which boosts demand.
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.
Leave a Reply