The price of a barrel of West Texas Intermediate crude oil to be delivered on the eighth is $110.31 on the New York NYMEX, up 1.73 percent.
The price of Brent Crude on ICE in September is $113.74. per barrel, up 0.21%.
Crude oil is starting the third quarter “in good shape”, after crude oil prices fell in June, when concerns about an economic slowdown caused the first monthly loss in crude prices this year.
The Russian invasion of Ukraine for several weeks disrupted oil flows and increased raw material prices, while sharply rising energy costs pushed inflation to levels not seen in several decades.
This forces central banks to tighten monetary policy aggressively and threatens to slow the economy, and thus lower demand for goods.
“I don’t think sentiment in the markets will turn positive,” said Daniel Haynes, senior commodity analyst at Australia and New Zealand Banking Group Ltd.
Meanwhile, investors are closely watching the development of the situation in China, where the authorities are still struggling to contain the outbreak of the Covid-19 epidemic, which would disrupt the full opening of the economy after the local closures introduced earlier.
China remains a real “wild card” for investors. They took two steps forward, one step back, assessing Heinz.
“The recovery in demand for oil and its products in China could offset weakness in other advanced economies as central banks tighten lending policies,” he added.
Meanwhile, more oil from Ecuador may find its way into the fuel markets, as oil production has increased by 90%. After the end of the protests in that country the end of June.
The Ecuadorean Energy Ministry said oil production had returned to normal and had risen to more than 461,000. barrels per day.
To date, 952 out of 1,142 columns have resumed work, which earlier – due to strikes lasting 18 days – stopped production.
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