Oil prices fell on Tuesday after an increase of 2 % in the previous session, as traders maintained developments in the conflict in Russia-Ukraine.
Anton Petros Moment Gety pictures
Oil prices have gained on Tuesday, when the escalation of Ukraine war raised questions about the flexibility of Russian supplies, while uncertainty passes on the impact of Washington’s policies on the main oil consumers.
Futures in November amounted to $ 69.46 a barrel at 10:54 am London time (5:54 am US time), an increase of 1.92 % of the closure of Monday.
The NYMEX WTI contract was traded in the front month in October at $ 65.97 a barrel, which is 3.06 % higher. WTI futures did not stabilize on Monday due to the American business vacation.
Russia’s supply
Moscow and Kayef increased fire exchanges in their struggle for three and a half years, as Reuters accounts indicated the attacks of Ukrainian drones that represent at least 17 % of the oil treatment capacity in Russia. CNBC could not independently verify the report.
Ukrainian President Folodimir Zellinski pledged “new deep strikes” against Russia in A. Social media Post during the weekend, without revealing the details. His pledge comes amid the efforts of the United States and European to attract Kremlin leader Vladimir Putin to waive the dual ceasefire talks with his Ukrainian counterpart.
The White House separately pressed the indirect pressure on oil consumers in Russia, where they implemented additional fees on imports of Indian goods attributed to the continuous New Delhi purchases of Moscow crude. India criticized the hypothesis as “unfair, unjustified and unreasonable.”
Another sign of the deterioration of relations, US President Donald Trump on Monday Multiply In Lambasting Washington Trade Relations with India as a “completely one disaster”.
It is very important that Washington has not yet moved against China, the world’s largest crude importer and the largest oil buyer in Russia since the introduction of Group 7. Putin, Chinese President Xi Jinping and Indian Prime Minister Narendra Modi He met this week Shanghai Cooperation Organization Summit (SCO), at a presentation of global southern unit.
OPEC+
Also on the supply aspect, oil investors are looking for policy of directing from a sub-group of eight members of the OPEC+coalition-which includes heavy from Russia and the Kingdom of Saudi Arabia, along with Algeria, Iraq, Kazakhstan, Kuwait, and Oman, that is, from the United Arab Emirates-which is due to the sudden capabilities steps on September 7. Cutting production is widely seen as unlikely the course of the strategy this week changes.
Analysts said on Tuesday: “We think, just like the broader market, that the group will leave production levels unchanged for the month of October,” analysts said on Tuesday. “The size of the surplus during the next year means that the group is unlikely to bring additional supplies to the market. The biggest risks is OPEC+ decides to re -supply discounts, given fears about the surplus.”
US prices
Likewise, market participants this week in the Job August report in the United States are expected to be taken into account at the US Federal Reserve Monetary Reserve meeting from September 16 to 17. The Federal Reserve is currently expected to reduce interest rates at the time, in a move that can hesitate in the most soft green back and raise the demand for goods from the United States, such as oil.
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