The cost of “black gold” is influenced by the reduction in the United States Sovereign Rating of the United States of Moody agency and official economic data from China.
Oil prices in the world are reduced at the beginning of the new working week. This was proven by the results of the trading on Monday morning, May 19.
Thus, the cost of July futures in the Brent variety at the Ice Futures London Exchange according to 10:30 in KYIV fell $ 0.60 (0.92%) up to $ 64.81 per barrel. Last Friday, these contracts raised $ 0.88 (1.4%) to $ 65.41 per barrel.
WTI oil futures for June at the New York Model Exchange (NYMEX) electronic auction of $ 0.58 (0.5%) to $ 61.39 per barrel. According to the results of the previous session, the value of these contracts increased by $ 0.87 (1.4%), up to $ 62.49 per barrel.
According to Reuters, oil prices have been reduced under the pressure of reduction in the United States sovereign rating of the Moody agency. Autumn has also been affected by the data of official statistics, which has shown slowing down the speed of industrial production and retail sales in China.
The agency noted that both oil contracts added more than 1% last week after the United States and China agreed to a 90-day pause in the trade war and a sharp decline in importing duties of one another.
The moody rating drops US economy prospects, and data from China indicates an uneven path of restoration, says Sachdeva, senior analyst at Phillip Nova.
Moody lowered the US sovereign rating on Friday due to a growing debt over $ 36 trillion-which could complicate the Trump administration’s plan to reduce taxes.
In China, the largest oil import, official statistics for April showed a slowdown in industry production, though the results were better than the expectations of economists. Despite stopping the tariffs, the economy focused on exporting China still faces a 30%duty on current fees, and the lack of sanity policy in the US trade policy is planting prospects.
Uncertainty in the results of USA and Iran’s nuclear negotiations can also be seen in prices. US special messenger Steve Whitkoff said any agreement should exclude the enrichment of Uranus, that Tehran would not agree.
“There is a lot of hope for these negotiations, but Iran is not likely to voluntarily abandon his nuclear ambitions, which he considers inevitable, especially after his proxy groups are weakened,” said IG analyst Tony Saikamor.
In Europe, increasing intensity encouraged the restraint to a Greek oil tank, leaving the Estonian port.
In the United States, the number of existing oil towers has been reduced by one to 473 – a minimum since January, Baker Hughes reports. Manufacturers continue to reduce costs, which can slow down oil production in the country this year.
Keep in mind that according to April’s results, Russia gained 13.2 billion dollars from exporting raw oil and oil products. This is the lowest indicator in almost two years, Bloomberg said there is a reference to the International Energy Agency (IEA).
News from CORRESPONDENT.NET On the telegram and whatsapp. Subscribe to our channels https://t.me/KorresPondentNet and WhatsApp
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.