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Oil prices rise on API data on falling inventories in the US, Brent - $104.58 per barrel

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28 July 2022

Oil prices are growing weakly on Wednesday against the backdrop of data from the American Petroleum Institute (API), which showed a sharp decline in US inventories, Interfax reports.

 The pressure on the market continues to be exerted by fears of a recession in the US economy in the context of the rapid tightening of monetary policy by the Federal Reserve System (FRS). The Fed ends its regular meeting on Wednesday, following which it is expected to raise its benchmark interest rate again by 75 basis points.

 The cost of September futures for Brent oil on the London ICE Futures exchange by 8:05 Moscow time on Wednesday is $104.58 per barrel, which is $0.18 (0.17%) higher than the closing price of the previous session. As a result of trading on Tuesday, these contracts fell by $0.75 (0.7%) to $104.4 per barrel.

 The price of futures for WTI oil for September in the electronic trading of the New York Mercantile Exchange (NYMEX) is $95.3 per barrel by this time, which is $0.32 (0.34%) higher than the final value of the previous session. By the close of the market on Thursday, the value of these contracts fell by $1.72 (1.8%) to $94.98 per barrel.

 Oil inventories in the United States in the week ended June 22 fell by 4.037 million barrels after rising by 1.86 million barrels a week earlier. The official report on energy reserves in the country for the past week will be published by the US Department of Energy on Wednesday at 17:30 Moscow time.

 A survey conducted by the American Automobile Association showed that US citizens are changing their habits in response to the rising cost of gasoline and diesel fuel, reducing the number of trips. This helps to reduce demand at the peak of the summer season. The drop in gasoline demand at a time when it should remain strong highlights the risks of stagflation and its potential consequences, experts say.