New York. Oil prices fell this Wednesday, as the announcement of an interest rate cut by the United States Federal Reserve (Fed) increased concern about the health of the world’s largest economy and investors downplayed a decline in the inventories that they attributed to the impact of short-lived weather conditions.
In this context, the European benchmark Brent subtracted 5 cents to 73.65 dollars a barrel, while the American West Texas Intermediate (WTI) lost 28 cents to 70.91 dollars a barrel.
For its part, the Mexican export mix fell 9 cents, closing at 65.61 dollars per barrel.
The US Federal Reserve (Fed, central bank) cut interest rates by half a percentage point, a drop in borrowing costs greater than many expected, highlighting the central bank’s concern about the slowdown in the labor market .
Rate cuts typically boost economic activity and energy demand, but a weaker labor market can slow activity.
Crude oil inventories fell 1.6 million barrels, to 417.5 million barrels, in the week ending September 13, the Energy Information Administration (EIA) reported, compared to the expectations of analysts, who in a survey of Reuters expected a reduction of 500 thousand barrels.
The reduction in crude oil inventories, which were at their lowest level in a year, helped limit the fall in prices.
While the EIA report was more favorable for oil prices than Tuesday’s figures from the American Petroleum Institute, investors likely linked the decline to Hurricane Francine, a short-lived event, said Bob Yawger, director of futures energy from Mizuho bank.
Earlier in the session, oil found support in the risks of increased violence in the Middle East disrupting supplies after Hezbollah accused Israel of attacking the militant group with explosive-laden pagers in Lebanon. The group vowed to retaliate.
“The end of peak summer demand and a negative shift in trader sentiment have contributed to the decline in prices, although potential conflicts in the Middle East continue to pose a risk of supply disruption,” said Mazen Salhab, chief strategist. market for the Middle East and North Africa of BDSwiss.
With editorial information
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– 2024-09-29 19:58:36
