New York West Texas Intermediate (WTI) crude futures ended negative on Thursday (Jan 27) as investors worried about the impact of the Federal Reserve’s interest rate hike. in March Meanwhile, investors are still keeping an eye on the tense situation in Ukraine. including the meeting of the Petroleum Exporting Countries (OPEC) and its allies or OPEC Plus on February 2
- The WTI crude oil contract was delivered in March. It was down 74 cents, or 0.9%, at $86.61 a barrel.
- The Brent crude oil contract (BRENT) will be delivered in March. It was down 62 cents, or 0.7%, at $89.34 a barrel.
Trading conditions in the oil market were affected by the strength of the dollar. by dollar index The index, which measures the dollar’s movements against six major currencies in a basket of currencies, surged 0.7% overnight, making oil contracts more expensive and less attractive to investors holding other currencies.
Phil Fine, an analyst with The Price Futures Group, said that although the oil market has been boosted in part by the crisis in Ukraine and the conflict between Russia and the West. But investors are now worried about higher borrowing costs if the Fed raises interest rates. Investors also saw stronger-than-expected US gross domestic product (GDP) growth in the fourth quarter. 2021 could drive the Fed to raise interest rates even faster.
The U.S. Commerce Department said GDP growth for the fourth quarter of the United States grew 6.9 percent, higher than analysts’ forecast of 5.5%, with the U.S. economy being driven by consumer spending. including that the business sector increases the inventory stock
For the full year 2021, US GDP grew 5.7 percent, the highest since 1984, after contracting 3.4 percent in 2020, the worst contraction since 1946, hit by the epidemic. Covid-19
For the latest Ukrainian situation The Kremlin said yesterday that Russia and the United States still have room for further talks. Although Russia’s security demands were not met by the US.
Russia has made claims against the United States and the West to ensure that The North Atlantic Treaty Organization (NATO) will not accept Ukraine and other former Soviet Union countries. While the United States and its allies must withdraw their troops from the former Soviet Union countries.
Investors will keep an eye on the OPEC Plus meeting on Feb. 2 to consider production policy for March. Analysts expect OPEC Plus will continue to stick to its original deal to add only 400,000 barrels per day of oil production at this meeting. Despite pressure from the United States and its allies to want OPEC Plus to increase oil production more.
By InfoQuest News Agency (28 Jan. 65)
Tags: lifestyle, WTI, oil, crude oil, oil prices
