Tuesday September 19, 2023 | Source: ABM Financial News
(ABM FN-Dow Jones) Oil prices closed lower on Tuesday, after three days of gains and after reaching new highs earlier in the day.
An October future for a barrel of West Texas Intermediate crude ended 0.3 percent lower at $ 91.20 on the New York Mercantile Exchange, after reaching the highest closing level of the year on Monday.
Earlier in the day, WTI oil was still 2.5 percent higher at $ 93.74. That move was mainly because the dollar fell abruptly in the run-up to the Fed’s interest rate decision on Wednesday. However, the dollar recovered again and the oil price also dropped again.
“Oil trading is a complex game and there are hot spots that could take Brent crude, and possibly WTI, to $100 a barrel soon,” said Tom Kloza of Oil Price Information Service.
Whether that price of $100 can continue for a month is an interesting question. “When there are optimistic extremes in sentiment, that is often a sign that the market is about to turn.”
Chevron CEO Mike Wirth predicted that the price will rise to $100. Saudi Arabia and Russia have cut production, which some investors say will outweigh weak economic growth in China and Europe.
Citigroup thinks that $90 a barrel is not sustainable. “Higher prices in the near term could create more downside room for oil prices next year,” said Edward Morse of Citigroup.
Attention now shifts to Wednesday’s weekly US oil inventories data.
Bron: ABM Financial News
2023-09-19 19:44:55
#Oil #price #drops #slightly
