InfoQuest – West Texas Crude Oil (WTI) contracts in New York closed negative on Tuesday (April 16) as investors worried that the Federal Reserve (Fed) would keep interest rates high for a long time.
The WTI crude oil contract will be delivered in May. fell 5 cents, or 0.06%, to close at $85.36/barrel.
Brent crude oil contract (BRENT) for delivery in June. fell 8 cents, or 0.08%, to close at $90.02/barrel.
At first, WTI oil prices rose above $86/barrel. in the midst of the tense situation in the Middle East After Lieutenant General Hersi Halevi, Chief of Staff of the Israeli Self Defense Forces (IDF), signaled that Israel would retaliate against Iran. After Iran used hundreds of drones and missiles to attack Israel on Saturday night, April 13, Iran announced that it would not stand idly by if Israel attacked Iran. Iran will respond with faster and more serious tactics.
WTI oil prices weakened later. After Mr. Jerome Powell, Chairman of the Fed, signed that The Fed may hold interest rates high for a longer period than expected. This makes investors worry that high interest rates will affect economic activity and the demand for oil.
Mr. delivered Powell’s speech at a seminar held in Washington yesterday. “Recent data show that the US economy and labor market continue to expand strongly. In terms of the inflation numbers Although it has continued to slow But it is still not enough to give the Fed confidence that inflation will fall to its 2% target As a result, the Fed will need to keep rates interest is high for a longer period than initially expected.”
Oil prices were also under pressure after the American Petroleum Institute (API) said US crude oil inventories rose by 4.1 million barrels in the week ended April 12, exceeding analysts’ expectations for a rise of zero. but 1.4 million barrels.
Warren Paterson, an analyst at ING Groep NV in Singapore, said: “Investors are now keeping a close eye on Israel’s stance. If Israel takes retaliatory measures against Iran, it could intensify the situation of tension in the Middle East. and it will affect the oil supply in the market This is because Iran is the third largest member of the Organization of the Petroleum Exporting Countries (OPEC) and can produce more than 3 million barrels of crude oil per day. “
In addition, investors are also keeping an eye on the movements of the United States. After Mrs. Janet Yellen, US Treasury Secretary, said the US may impose new sanctions on Iran in the coming days. In response to Iran’s attack on Israel Investors think that if the United States takes such measures, it will affect Iran’s oil exports.
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