Quotations of WTI and Brent show negative dynamics after five days of growth
As of 9:20 Kyiv time, WTI oil futures fell to $70.99 per barrel, losing 1.39%. At the same time, Brent crude oil is trading at $74.40 per barrel, showing a drop of 1.5%.
Mind became aware of this from Trading Economics data.
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It is noted that the main pressure on oil quotes is exerted by the strengthening of the US dollar against the backdrop of the counting of votes in the primaries in the US, where preliminary results indicate the leadership of former President Donald Trump.
Adding to the pressure was data from the American Petroleum Institute (API), which showed a rise in US crude oil inventories by 3.1 million barrels last week, which exceeded an expected increase of 1.8 million barrels.
Investors’ attention is also focused on the weekly meeting of the National People’s Congress and the upcoming decision of the Federal Open Market Committee (FOMC) on Thursday. Both events may affect the outlook for demand from the largest oil consumers.
Separately, it is worth noting the threat of Hurricane Rafael to oil production in the Gulf of Mexico, which could potentially lead to a reduction in production by 1.7 million barrels per day.
Background. Mind previously wrote that the Republicans have a majority in the Senate in the congressional elections, and the battle for the House of Representatives is still ongoing.
