High rates rear its ugly head in the oil market

2024-02-26
Summary:

Asian oil prices dropped Monday, continuing losses from the prior session, with a weekly decline of 2-3% due to fading rate cuts.

Oil prices fell in early Asian trading on Monday, extending losses from the previous session after oil ended the week 2-3% lower amid ebbing rate cut expectations.

White House national security adviser Jake Sullivan told CNN on Sunday that negotiators for the US, Egypt, Qatar and Israel had agreed on the basic contours of a hostage deal during talks in Paris.


However Israeli PM Netanyahu said it was not clear yet whether a deal would materialise. The Iran-aligned Houthis is continuing their attacks on shipping in the Red Sea.


The EIA said last week that crude inventories had risen by 3.5 million barrels in the week ending 16 Feb. That compared with analysts' expectations in a Reuters poll for a gain of 3.9 million barrels.


Oil has been caught between the bullish tailwinds of lower OPEC output and rising Middle East tensions, and bearish concerns about flagging consumption in top importer China this year.


China saw arrivals at 11.31 million bpd in January, just below the 11.48 million bpd imports in December, according to LSEG data. Russia kept its top spot as the country’s largest crude supplier.

XTIUSD

WTI crude dipped below its 200 SMA and its lowest since 8 Feb on Friday. The immediate support is located around $75.5, below which the significant downside potential will be unlocked.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Oil prices back above 90 as Iran vows revenge

Oil prices back above 90 as Iran vows revenge

Oil surged to $90 on Friday due to tensions in the Middle East. Iran vows retaliation after an alleged Israeli attack on its Syrian embassy.

2024-04-12
Wall St sinks on worrisome CPI reading

Wall St sinks on worrisome CPI reading

US stocks plunged Wednesday as unexpected inflation dashed hopes of a June rate cut. Treasury yields hit 4.5%, the highest since November.

2024-04-11
US gas price heats up amid commodity boom

US gas price heats up amid commodity boom

US gas prices rose Wednesday, buoyed by recovery signs in Europe and Asia and robust US growth, extending this month's rally with other commodities.

2024-04-10