A little decrease in oil prices was witnessed as there was conjecture that surprisingly strong inflation rates could delay the cutting of high interest rates, which have been impeding the expansion of the world’s fuel demand.
By 1415 GMT, Brent crude futures had dropped 20 cents, or 0.3%, to $81.42 per barrel. In a same vein, West Texas Intermediate (WTI) futures for the United States fell by 13 cents, or 0.2%, to settle at $76.36.
This downward trend is a continuation of last week’s losses, with Brent falling by around 2% and WTI falling by more than 3% due to signals indicating the U.S. Federal Reserve plans to keep interest rates unchanged for the foreseeable future.
Oil prices have been ranging between $70 and $90 per barrel since November. There are a number of reasons for this variation, such as the rising supply from the United States and concerns about the slowing demand from China.
What influences the price of crude oil?
-In the middle of the ongoing Israel-Hamas war in the Middle East, negotiators from the United States, Egypt, Qatar, and Israel have made some first agreements on a hostage arrangement, according to CNN on Sunday, which was reported by White House national security adviser Jake Sullivan.
-A slight geopolitical risk premium of $2 per barrel on Brent crude was observed by Goldman Sachs analysts as a result of Yemeni Houthi attacks on ships in the Red Sea.
-Goldman Sachs has revised its projections, despite the fact that they still expect the demand for oil to rise by 1.5 million barrels per day (bpd) by 2024. They increased their predictions for the US and India but decreased them for China.
