Another day of sharp drops for oil. In 4 sessions the barrel lost around 10 dollars and today it is trading in London just above 84 dollars. The turnaround comes after a month of continuous increases which had brought the price of crude oil from 82 dollars at the end of August to […]
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Another day of sharp drops for oil. In 4 sessions the barrel has lost around 10 dollars and today it is trading in London just above 84 dollars. The turnaround comes after a month of continuous increases which had brought the price of crude oil from 82 dollars at the end of August to over 96, among other things pushing up the prices of petrol and diesel. The run-up in prices was triggered by the decision to Saudi Arabia and Russia to prolong production cuts, thus reducing supply on the market. Brent closed today down 1.9% at 84.2 dollars but on Wednesday the decline had exceeded 5%, configuring the steepest daily decline in more than a year. A decline that aroused surprise even among the operators of the market and which is at least partially motivated by the surge in interest rates on the bond markets.
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This condition could result in a slowdown in economic growth higher than forecast and therefore in a drop in demand for fuels greater than expected. The downward movement was amplified by many speculative factors hedge fund who have bullish bets on crude oil in place and have quickly corrected their positions. A small downward push also came from the data on US inventories, up 6.5 million barrels last week. There seems to be one on the market marked volatility but if the decline in prices were to consolidate, they would be there positive impact on the cost of fuel and, in cascade, on those of electricity and gas. In general, inflationary pressures would weaken, a factor that could soften the central banks’ resolve to keep inflation high. cost of money.
2023-10-05 20:10:47
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