New York.- Texas Intermediate oil (WTI) price fell 1.9% to $80.08 a barrel this Friday, after breaking below the $80 resistance during the day, amid rising fears of an economy contraction and rising Covid cases China World It is the largest consumer of crude oil.
At the end of trading on the New York Mercantile Exchange (Nymex), the WTI futures contract for December delivery fell $1.56 from the previous day’s close and in the weekly set, black gold has given up 10%, down for two straight weeks.
Oanda analyst Craig Erlam assures that “Oil prices continue to decline in the context of a growing economic outlook and a rise in Covid cases in China, which could lead to more restrictions and blockades, and further damage to the world’s second largest economy I am at risk of demand.”
US benchmark crude fell 4.6% on Thursday, hitting its lowest level since late September and despite the fact that OPEC oil-producing countries agreed last October to cut their output by two million barrels per day. Decided so as to try to increase its value. At that time when it was $ 87 per barrel.
Similarly, local representatives of the US Federal Reserve (Fed) are insistent in their belief that we must keep raising interest rates to continue trying to cool the economy and, ultimately, contract inflation is also having an effect.
Yesterday, James Bullard, president of the Federal Reserve of St. Louis, who is considered one of the biggest defenders of continuing to raise interest rates, assured that the Fed’s measures have had a “limited” effect and pointed out that rates will continue to rise. A minimum of 5 and 5.25% and a maximum of 7%, while they currently range between 3.75 and 4%, the highest level since 2017.
“Markets will certainly turn their attention to OPEC+ supply in the coming weeks as it remains to be seen how much daily production will actually drop following the official announcement of the 2 million barrel cut,” quoted Barbara Lambrecht of firm Commerzbank. Market Watch website.
On the other hand, the December natural gas futures contract fell 6 cents to $6.3, and for the same month gasoline futures fell 3 cents to $2.42 a gallon.