Connect with us

Hi, what are you looking for?


Oil is up but are poised for a third straight week of down

Oil is up but are poised for a third straight week of down

Oil prices have experienced a tumultuous period, with a third week of losses looming after a big drop. Concerns have been raised over fears of a weakening US economy and a slowdown in Chinese demand, leading to a flurry of sales.

The price of Brent oil rose by 1.24 dollars to reach 73.74 dollars per barrel, while US West Texas Intermediate increased by 1.66% to $69.69, following four days of decline.

The week ended with a 7% fall in benchmark Brent, while WTI suffered a 9% drop.

In addition to the challenges posed by the pandemic, there is also a disconnect between the oil balance and oil prices, which may be temporary. This may lead to instability in the US banking sector and recession risks, as seen by the recent strategic directions of PacWest Bancorp. Services activity in China did show signs of improvement through April. Still, the pace of expansion has slowed considerably.

Investors have found some reassurance in the potential supply cut that may be announced at the next OPEC+ meeting in June. Meanwhile, China is returning to pre-pandemic levels of air travel, with 9.43 million domestic air passengers recorded during the recent five-day Labor Day holiday.

Global oil consumption should rise by 2 million barrels per day this year, reaching a record 101.9 million barrels per day, according to the International Energy Agency.

While the situation remains uncertain, the Saudis and their OPEC+ counterparts should take action to prop up prices if fundamentals deteriorate. Investors now anticipate that the Fed will hold off on raising rates at its June policy meeting. As the world continues to grapple with the impact of the pandemic, the oil market is likely to remain volatile soon.

The post Oil is up but are poised for a third straight week of down appeared first on FinanceBrokerage.

    You May Also Like


    On the surface, index and stock options are very similar. Still, there are some differences that traders should be aware of. Understanding these differences...

    Latest News

    The FBI was not forthcoming with the Trump, Biden and Pence classified documents during a House Intelligence Committee briefing last week, and lawmakers still...

    Editor's Pick

    iBASIS and Sequans have been selected by Actility to meet its delivery schedule for eSIM and iSIM iBASIS and Sequans now considered frontrunners in...


    American Airlines is getting rid of its traditional frequent flyer award chart as the carrier moves toward dynamic pricing for mileage redemptions, the latest shift in its lucrative AAdvantage...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024