Oil prices supported by bargain hunters as SPR release eagerly awaited

Oil futures on Thursday posted gains of 0.8 percent based solely on bargain hunting activity as Brent and West Texas Intermediate fell below their 50-day moving averages in the previous session.

Spencer Vosko, director of crude oil at Black Diamond Commodities, said: “With a lot of political talk trying to chase the market down, the WTI seems to be getting some support for $ 78, for now, after getting out of the middle-80 $ Last week.”

Thursday’s WTI rose 65 cents settle in $ 79.01 per barrel, while Brent rose 96 cents settle in $ 81.24 per barrel.

As has been the case for the week, all eyes are on whether the we will exploit its strategic oil reserves with the aim of reducing domestic prices, although the impact would be minimal: Giovanni Staunovo, commodities analyst at UBS Group.

During this time, China noted it is working on releasing some of its oil reserves, and more details on the release volume and date are to come.

However, Michael tran, Managing Director of Global Energy Strategy at RBC Capital Markets, Thursday suggested that the american president Joe biden doing nothing other than trying to bring down the price of oil seems to work and that it might buy some time in the hope that as business activity declines during the Christmas season, prices will ease off of themselves.

Tran said, “The bark may turn out to be worse than the bite: the strategy of cutting the market may end up having a bigger impact than the element of surprise,” and he noted that futures contracts on US crude fell by about 7 percent since October 26.

For its part, Michele Pedroni, fund manager at DECALIA in Geneva, welcomed the turnaround: “After flying with fanciful forecasts of oil reaching $ 150 for the past few months, we have now come back down to earth: the price of oil remains a declining asset class and it is a sector where there is less investment. “

Pedroni added regarding Thursday’s information that oil company shares fell between 1.4 percent and 2.3 percent (for Royal Dutch Shell, TotalEnergies, and PA), “Even though demand for oil remains good, today’s news sounded the first wake-up call to start slowing the rally we’ve seen over the past few months.”


Source link

Felix J. Dixon