empty
 
 

Forex Analysis & Reviews: Oil ended the week in the red, and the EU countries are in disagreement
time 26.11.2022 10:21 AM
time Relevance up to, 27.11.2022 12:25 AM

This image is no longer relevant

Even though this week ended in the red, oil prices rose steadily during Friday trading. The market is still being affected by traders' concerns about China's potential oil demand.

On Friday, the January Brent crude futures price on the London ICE Futures exchange was $86.67 per barrel, or 1.56% more than the session's closing price.

By this point, the price of January WTI crude oil futures traded electronically on the New York Mercantile Exchange had increased by 2.32%, or to $79.75 per barrel.

The coronavirus no longer commands the attention of society and the media to the same extent that it did a year ago. It is gradually being forgotten worldwide as attention is drawn to more important events. The coronavirus, however, continues to dominate the front pages of major print publications and the main summaries of television news in China. As a result of its increasing prevalence, the government is forced to enact new quarantine regulations. Major Chinese cities, from the port city of Tianjin in the north to Guangzhou in the south, have strict restrictions on public life that residents are once again required to adhere to. The need for fuel has significantly decreased in these areas due to the noticeable reduction in movement.

As we all know, China is the world's largest consumer of black gold, but this time it managed to lower the key indicator of this region's demand for raw materials to a 7-month low. For the first time since April of this year, the premium of Omani oil futures relative to similar-term swaps for Dubai oil collapsed below $1 per barrel. This premium reached $15 in March when many consumers turned away from Russian oil and more toward Middle Eastern varieties.

The negotiations in the European Union over the cap on prices for Russian oil are a significant factor influencing the commodity market. According to the most recent news reports, Western European officials have the authority to set a very high price cap.

However, the Wall Street Journal reports made it clear that the EU nations are still debating the precise level at which they will set a cap on the price of Russian black gold. However, they needed help to reach a consensus, effectively ending this endeavor.

Poland, Estonia, and Latvia disagreed with the $65-70 per barrel price range that the G7 suggested. These nations' leaders are ranting that this price is excessively high and leaves Russia with an excessive income, which it must never receive. Cyprus, Greece, and Malta concurred, stating that this level is incredibly low and should not be generally underestimated. Hungary requests exceptions for itself and is categorically opposed to the measure in principle.

Some European diplomats have already stated that calling another meeting of this magnitude would be pointless if the price ceiling issue still needed to be resolved.

Additionally, Reuters reported on November 24 that the introduction of marginal oil prices from Russia by Western European nations would have almost no immediate impact on the nation's revenues.

Before that, the German TV network N-TV reported that despite the Russian Federation's energy supplies declining due to strict sanctions, the country's sales revenue increased. It would be good to approach the issue of how sanctions might impact Russia's economic situation realistically. Any supply restrictions only result in higher prices for the raw materials derived from these supplies, such as gas, coal, and oil.

Andreeva Natalya,
Analytical expert of InstaForex
© 2007-2023
OilUSD
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

InstaForex分析评论将让您充分了解市场趋势! 作为InstaForex的客户,您将获得大量的免费服务以实现有效的交易。

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $10000 more!
    In January we raffle $10000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

US stock market closes higher, Dow Jones gains 0.08%

At the close of the New York Stock Exchange, the Dow Jones rose 0.08%, the S&P 500 rose 0.25%, and the NASDAQ Composite rose 0.95%. The leading performer among

Thomas Frank 04:05 2023-01-30 UTC+2

European markets closes the week with growth

Major Western European indexes were trading higher on Friday after falling the day before. European markets advanced after a spectacular rise in US and Asian stock markets. Mining stocks rallied

Irina Maksimova 00:45 2023-01-29 UTC+2

The dollar is swirling in a cycle of new numbers. The Fed has the last word.

Market sentiment is mixed, with traders trying to catch the most accurate signal coming from U.S. data. While people are almost certain that the Federal Reserve will be less aggressive

Anna Zotova 00:45 2023-01-29 UTC+2

Second straight day of gains for Asian markets as uptrend continues

Major Asian indexes continued to rise on Friday, though the upside movement was not as strong as it was yesterday. In Japan, the Nikkei 225 inched up by only 0.05%

15:53 2023-01-27 UTC+2

Oil prices edge up, and Russia transfers record volumes on high seas

Oil is steadily rising in trading on Thursday amid expectations of increased demand. The easing of some quarantine restrictions in China promises the market a recovery in consumption this year

Natalia Andreeva 22:52 2023-01-26 UTC+2

Asian stocks move in different directions again

Asian equities were moving in different directions on Thursday. The Hong Kong stock exchange trading resumed, and the Hang Seng Index immediately showed an increase of 2.02%. The Korean KOSPI

22:52 2023-01-26 UTC+2

Winter for the dollar, summer for the euro: USD doesn't know how to get out of the pit

The dollar is still stuck in the financial pit. The greenback fell to an 8-month low on Thursday, once again yielding to the euro. Market participants expect

Larisa Kolesnikova 08:14 2023-01-26 UTC+2

US stock market closed mixed, Dow Jones up 0.03%

The US stock market ended Wednesday's trading in different directions due to the strengthening of the telecommunications, consumer services and finance sectors. The market demonstrates against the backdrop of negative

Thomas Frank 04:16 2023-01-26 UTC+2

The pound is resisting the downturn

The British currency successfully resists the downtrend, although the periodical GBP slump gives investors a reason to be pessimistic. However, sterling refuses to stand still. At the beginning

Larisa Kolesnikova 08:42 2023-01-25 UTC+2

USD/JPY: Every day is the last

Every day the dollar-yen asset feels the approaching end and tries to postpone it in every way possible. This week, the greenback and the yen are showing an unquenchable thirst

Аlena Ivannitskaya 08:36 2023-01-25 UTC+2
现在无法通话?
提出您的问题,用 在线帮助.