[ad_1]
The weekend of US President Donald Trump's oil diplomacy offered mixed messages on the supply and contradictory responses of traders after prices fell while badysts predict that any decline could be ephemeral. tweet over the weekend suggested that Saudi Arabia had agreed to pump 2 million more barrels a day. But follow-up statements from the White House and the Saudi press agency were more ambiguous. They both said that both parties had spoken, but neither statement cited a specific target.
In the short term, even the odds of a Saudi boost would likely lower prices, said Phil Flynn, senior market badyst at Price Futures Group Inc. But the underlying dynamics of a market that threatens more and more supply could He said prices should rise in the long run, he said.
"The demand for oil will start to rise again, and the market will quickly absorb these barrels," Flynn said by phone. "Then you will be in a situation where you have essentially suppressed most of the reserve production."
West Texas Intermediate futures for delivery in August fell 0.8 percent to $ 73.59 on barrel at 7:28 pm in New York.Brent crude, the world benchmark, fell 68 cents to 78.55 dollars a barrel. [19659002] Last week, hedge funds cut 60% the price WTI crude, the highest since 2006. The closure of an oil sands processing plant in Canada, tensions in Libya, the economic collapse of Venezuela and the US call. Allies stopping their purchases in Iran have all wreaked havoc on the world crude market
A tightening of inventories in the United States has also kept crude oil prices at a high level, the account has decreased slightly.
Trump In early May, the administration has an stated that it would renew US sanctions against Iran and that it was seeking to reduce Iran's purchases by foreign buyers.
Trump's tweet "does not change the dynamics". Oil Associates LLC in Houston, in a telephone interview. "The perception of the market is that supplies are tight and will tighten with the loss of Iranian oil.It may not be until we see Brent exceed $ 80 that we actually see the Saudis react. "
[ad_2]
Source link
