Oil prices rose significantly on Monday, supported by expectations of increased fuel demand in the summer. However, the price increase was delayed due to the strengthening of the dollar, which was due to lower investor expectations for a reduction in interest rates in the United States.This is reported by Reuters, reports UNN.
According to Goldman Sachs analysts, the price of Brent crude oil may reach 8 86 per barrel in the third quarter. They point out that stable summer demand for transport will contribute to a shortage in the oil market, estimated at 1.3 million barrels per day.
The price of Brent futures rose 16 cents, or 0.2%, to досяг 79.78 a barrel, while the price of West Texas Intermediate crude futures in the United States rose 6 cents to.75.59.
We believe that the current market positioning is too pessimistic, given that we expect a further reduction in oil reserves over the next few weeks
Last week, oil prices fell for the third consecutive week due to concerns about the plan of the organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to reduce some production restrictions from October, which could lead to an increase in supply in the market.
Against the background of these cuts, oil and gasoline reserves in the United States still increased last week. Consulting firm FGE predicts that oil prices could rise to середини 80 a barrel in the third quarter.
We continue to expect the market to strengthen. But this will most likely require a convincing signal about the strengthening of preliminary inventory data
The strength of the dollar negatively affected the market after new US employment data on Friday forced investors to reconsider their expectations for interest rates. At the same time, the euro fell after French President Emmanuel Macron announced early parliamentary elections. The appreciation of the US dollar makes commodities whose prices are indicated in dollars, such as oil, more expensive for holders of other currencies.
recall
OPEC + countries agreed on Sunday to continue most of their oil production cuts for 2024,but to begin phasing them out in 2025, as the group seeks to support the market amid slow global demand growth.