Brent ended down 1.1% to $ 44.50 and WTI closed with a loss of 0.8% to $ 41.61.
–
Oil prices ended slightly lower on Tuesday, retreating as the dollar limited its losses in a declining market ahead of the release of the US oil stocks report.
In London, a barrel of North Sea Brent for October delivery fell 59 cents, or 1.1%, to end at $ 44.50.
In New York, WTI’s US barrel for September fell 33 cents, or 0.8%, to close at $ 41.61.
“The trend reversed during the session as the dollar rallied a bit and we ended the day close to equilibrium,” notes Matt Smith of ClipperData. A higher dollar makes the purchases of barrels more expensive for investors with other currencies.
“Market players generally have no real conviction before the release of the US Energy Information Agency (EIA) report on Wednesday, which could show a further decline in crude reserves,” adds the specialist.
The EIA also released a monthly report on Tuesday in which it revises upward its forecast on the average barrel price of Brent and WTI in 2020 and downward its estimate on total crude production in the United States. this year, to 11.3 million barrels per day.
Earlier in the day, the prices of black gold had benefited from “the positive mood of the financial markets, carried by the new economic stimulus programs planned by the American president”, according to Eugen Weinberg of Commerzbank.
Donald Trump signed four decrees on Saturday providing for a payroll freeze, an extended unemployment benefit of $ 400 per week, protections for tenants threatened with eviction and a postponement of the repayment of student loans.
However, these measures risk being challenged in court since it is in Congress that the US Constitution confers most of the country’s budgetary decisions.
“The great production discipline shown by OPEC should + offset + the hesitant recovery in demand lately”, added Mr. Weinberg.
To overcome the fall in demand for crude, the organization and its allies, via the Opep + agreement, have decided to drastically reduce their crude production since May, setting limits by country.
“In addition, Iraq’s firm determination to make further production cuts seems to strengthen market confidence” in the cartel, the Commerzbank analyst added.
Iraq, which pumped more in the spring than the quota planned, is making efforts to catch up.
–
