Today, Monday, January 30, 2023, the price of a barrel of oil declined globally, giving up its gains at the beginning of trading.
Imminent interest rate hikes by major central banks and signs of stronger Russian exports offset rising tensions in the Middle East over a drone attack in Iran and hopes of a boost in Chinese demand.
Investors expect the Federal Reserve to raise interest rates by 25 basis points on Wednesday, followed the next day by half a point increase from the Bank of England and the European Central Bank, and any deviation from this scenario would be a shock.
The global price of a barrel of oil today
By 09:26 AM GMT (12:26 PM Mecca time), futures prices forBrent crude The benchmark – for March 2023 delivery – increased by 0.20%, to reach $86.49 per barrel.
The futures price fell toWest Texas Crude American – for March 2023 delivery – by 0.45%, to $ 79.32 a barrel, according to data viewed by the specialized energy platform.
And she was Oil prices It ended trading on Friday, January 27, down by more than 1.5%, due to profit-taking and an increase in Russian exports despite Western sanctions.
and scored The global price of a barrel of oil weekly losses, for the first time in 4 weeks; Both crudes (Brent and West Texas Intermediate) fell by 1.1% and 2.4%, respectively.
Oil market conditions
Serena Huang, head of Asia-Pacific analysis at Vortexa, said oil prices “are likely to be affected by potential rate hikes at the next Fed meeting.”
The market was also pressured by indications of Russian supply strength, despite the EU embargo and the G7 price cap over its invasion of Ukraine.
OPEC+ meeting
In addition to the central bank meetings, Wednesday’s meeting of the main ministers from the Organization of the Petroleum Exporting Countries (OPEC) will be held.OPECAnd allies led by Russia, in the alliance known as OPEC+, are also in focus.
It is unlikely that the meeting of the OPEC + committee, on Wednesday, will lead to a policy adjustment oil productionalthough some expected a slight decrease.
“The next wave of price stimulus is setting the stage for significant volatility in the price of a barrel of oil globally this week,” said analyst from PVM, Stephen Brennock.
“However, it is unlikely that prices will fall below $80, and you will find it difficult to get close to $100,” he added. Reuters.
Geopolitical tensions
The price of a barrel of oil rose globally, earlier today, Monday, amid tensions in the Middle East in the wake of a drone attack on a materials and energy laboratory in Iran.
Portfolio manager at Vantage 8, Stefano Grasso, said that although it is not yet clear what is happening in Iran; Any escalation there would likely disrupt the flow of crude oil.
Hopes of an increase in Chinese oil demand in 2023 have fueled; The world’s largest importer of crude oil pledged, over the weekend, to consolidate a recovery in consumption that would support demand.
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