The oil prices fell this Friday, erasing the gains of the previous session, as the dollar remained firm in the face of expectations that the Federal Reserve forward a cycle of interest rate hikes in an effort to control inflation.
At 10:37 GMT, crude oil futures Brent fell 94 cents, or 1.13%, to $ 81.93 a barrel, while West Texas Intermediate in the United States (WTI) they subtracted 1.18 dollars, or 1.45%, down to 80.41 dollars an ounce.
Both contracts were heading to close the week down after strong swings caused by the appreciation of the dollar and speculation about whether the US government will release crude from its strategic reserve to cool prices.
On the demand side there are positive signs, such as the rapid increase in air travelBut tighter monetary and fiscal policy and the impending winter in the northern hemisphere will act as a brake.
The Organization of Petroleum Exporting Countries (OPEC) on Thursday cut its forecast for global oil demand for the fourth quarter by 330,000 barrels per day (bpd) from last month’s forecast, as high energy prices hamper recovery from the economic consequences of the Covid-19 pandemic.
The oil market is sleepwalking into a supply surplus, “said Stephen Brennock of oil brokerage PVM.
“The OPEC and its allies will need to at least put a pause on easing their supply constraints in the new year. Inaction will result in an increase in world oil stocks once again, “he added.
The OPEC, Russia and its allies, known together as OPEC +, agreed last week to stick to plans to add 400,000 barrels a day to the market each month.
Reference-www.eleconomista.com.mx