The price of a barrel of West Texas Intermediate crude oil for March delivery is $86.57 on the New York Stock Exchange, down 0.89 percent. After it had reached a 7-year high in the previous session.
The price of Brent crude on ICE in London for March delivery is $89.20. a barrel, down 0.84 percent. That contract was $90.47 on Wednesday. Per barrel – highest since October 2014
Investors in fuel markets lost enthusiasm for larger oil purchases after Federal Reserve Chairman Jerome Powell said after the Fed meeting that the Fed is considering raising US interest rates in March, if conditions are right.
– We haven’t made a decision yet, we will make it at the meeting in March – the decision to raise interest rates. I would say that the Federal Open Market Committee is considering a rate hike at its March meeting, assuming there will be appropriate conditions for that – he said.
He added that the US economy will slow down somewhat soon, but it should show its strength shortly after that.
Powell noted that the federal bankers had not yet decided on the details of the US balance sheet cut, but indicated that the cut would be implemented faster and sooner than before.
Hou Lee, an economist at Oversea-Chinese Banking Corp., said:
“Tensions in the oil markets will continue in the near term, and possibly throughout this quarter,” Lee says.
I see no reason why oil shouldn’t cost $100. barrel – adds.
Meanwhile, US crude oil inventories rose last week by 2.38 million barrels, or 0.57 percent, according to data from the US Department of Energy. to 416.19 million barrels.
During that time, gasoline stocks increased by 1.3 million barrels, or 0.53 percent. to 247.92 million barrels, but reserves of distilled fuel, including heating oil, decreased by 2.8 million barrels, or 2.19 percent. Up to 125.15 million barrels – according to data from the Department of Energy.
Next week, the OPEC + countries will meet in their monthly meeting on February 2 to determine the supply policy for March.
Analysts note that the alliance of oil producers is likely to “muffle” the 400,000 increase in OPEC + oil supply in March. barrels a day.
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