Crude Oil Futures Rise Slightly as European Diesel Stocks Decline
West Texas Intermediate (WTI) crude futures in New York closed higher on Thursday, buoyed by reports of a decrease in diesel stocks in Europe. However, the strength of the dollar and concerns about demand trends limited gains as the market faced pressure throughout the day.
Crude Oil Contracts Show Modest Increase
The WTI crude oil contract, set to be introduced in October, saw a slight increase of 0.2%, or 16 cents, closing at $79.05 a barrel. Likewise, the Brent crude oil contract (BRENT), also debuting in October, rose by 0.2%, or 15 cents, reaching $83.36 per barrel.
Insights Global, a consulting company from the Netherlands, reported a 3% decrease in diesel fuel stock in refineries and storage centers in Amsterdam-Rotterdam-Antwerp (ARA) last week. This development contributed to the rebound in crude oil futures.
Dollar’s Strength Hampers Crude Oil Momentum
However, the dollar’s strength impeded the positive momentum of crude oil futures throughout the day. The dollar index, which measures the greenback against a basket of major currencies, witnessed a 0.55% increase to reach 103.9863. Consequently, the allure of crude oil futures diminished for investors.
Market Volatility Continues
UBS analyst Giovani Stanovo noted that the decline in diesel stocks in Europe, coupled with a slowdown in US government bond yields for a two-year period, supported the positive direction of crude oil futures. Nevertheless, market volatility persists and is expected to fluctuate until investors gain clarity on the Federal Reserve’s stance on interest rates.
Fed Chairman’s Speech to Shape Future Market Movement
Investors eagerly await a speech by Fed Chairman Jerome Powell, scheduled for later today at the Jackson Hole meeting. Powell’s address, entitled “Structural Shifts in the Global Economy,” will shed light on key factors influencing the market.
By InfoQuest News Agency (25 Aug 23)
Tags: WTI, WTI oil, oil price
Editor’s Picks, Economic News 6:49,2023-08-25
West Texas Intermediate (WTI) crude futures in New York closed higher on Thursday (Aug. 23) after reports that diesel stocks in Europe fell, but WTI crude futures gained little. As the strength of the dollar and concerns about demand trends put pressure on the market during the day.
The WTI crude oil contract will be introduced in October. They were up 16 cents, or 0.2%, at $79.05 a barrel. The Brent crude oil contract (BRENT) will be introduced in October. They were up 15 cents, or 0.2%, at $83.36 a barrel.
Crude oil futures rebound After Insights Global (Insights Global), a consulting company from the Netherlands, reported that Stock of diesel fuel in refineries and storage centers Amsterdam-Rotterdam-Antwerp (ARA) fell 3% last week.
However, the strength of the dollar hampered the positive momentum of crude oil futures during the day. according to the dollar index The Greenback, which measures the greenback against a basket of six major currencies, rose 0.55 percent to 103.9863, with the strength of the dollar making crude oil futures unattractive to investors.
Giovani Stanovo, analyst at UBS said: A drop in diesel stocks in Europe and a slowdown in US government bond yields for 2 years supported crude oil futures, closing in a positive direction. But market trading is volatile. And it is expected to continue to fluctuate until investors have a clear picture of the direction of Federal Reserve (Fed) interest rates.
Investors will be keeping an eye on Fed Chairman Jerome Powell, who will deliver a speech at a meeting in Jackson Hole later today at 10:05 a.m. (10:05 a.m. ET) Under the heading “Structural Shifts in the Global Economy”
By InfoQuest News Agency (25 Aug 23)
Tags: WTI , WTI oil , oil price
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