Tuesday , July 27 2021

Oil falls to the lowest level for nearly a year with the uncertainty of supply



SÃO PAULO – Oil prices continued on Tuesday afternoon, and the US reference value of WTI surpassed 6%, with a new intraday low since December and continued record loss at the 12th regular session.

Earlier this year, Brent's contracts for January dropped 6.26% to $ 65.73 per barrel at ICE in London after touching a low cost of $ 65.77. WTI dropped by 1.59 percent to $ 58.98 a barrel on the New York Mercantile Exchange (Nymex).

"The market comes out of control," said Eugene McGillian, vice president of Tradition Energy Market Research. "This is indeed a continuation of what we have previously seen and above all the uncertainty about the president's tweet & # 39; [Donald Trump] for manufacturers who do not know what to do. "

Trump said on Twitter that "fortunately, Saudi Arabia and OPEC will not cut oil production, the prices should be considerably lower, on the basis of supply!" Comments were surprising to many analysts who said they would hope that comments on the benefits of crumbling oil would end after congressional elections.

Oil dropped during October and November and was firmly on the bear market – generally defined as a 20% drop since its recent peak – after Washington decided to mitigate sanctions against Iran and offer an exemption for some oil.

For JBC Energy analysts, the depth of negative price alignment stems from market perceptions that Saudi Arabia's efforts to curb supply and boost return on commodity prices will not be enough.

The king announced plans to cut exports by 500,000 barrels a day in December, and cuts to major manufacturers reach a million barrels a day by 2019 – but the caution that Russia has shown is cautious about the size of the cut,

"Even if the 1 million barrel reduction per day, indicated by OPEC, is still going to be too large," JBC analysts said.

stock

With oil crash, energy companies rose Tuesday negatively on Wall Street, pushing Dow Jones down and limiting S & P 500 and Nasdaq Composite gains.

Among the companies that reflect the movement are Exxon Mobil and Chevron.


Source link