Oil prices ended on Friday after falling in recent days amid worries about a possible “recession” in gold supplies. North Sea Brent crude for August delivery rose 2.78% to $ 113.12. West Texas Intermediate (WTI) crude for the same month rose 3.21% to $ 107.62.
“Prices move according to two arguments. Either we are afraid that there is too little supply to meet the growing economies, or we are afraid that we will face declining demand when the world is in recession. due to rising commodity prices և high interest rates. .explained Andy Lipow from Lipow Oil Associates.
In the context of more aggressive action by central banks to fight inflation, raising their key interest rates and more disappointing economic performance, the economic outlook is worrying, says Tamas Vargan, PVM Energy analyst. “Demand for oil products will decrease in case of recession.”explains Ole R. Hvalbye, analyst Seb. “The current limits of astronomical oil refining will collapse, and the main growth factor for Brent will evaporate.”
“Thus, the agreement remains that the oil market will see high demand and low supply during the summer months.”, Tamash Vargan remembered. In support of rising prices on Friday in Ecuador, strikes are reducing oil production in the country, said Andy Lipou. In the United States, President Joe Biden’s initiative to repeal the quarterly federal tax of 18 cents per gallon of gasoline to reduce pump prices seems to have been repealed.
«The idea does not have the support of the Republicans, a number of Democrats are also unlikely to be in favor of it. It may be that the initiative does not even manage to be put to a vote “stressed the analyst of Lipow Oil Associates. “What the market looks like, it thinks it will not happen”he added.
Source: Le Figaro
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