Oil On The Boil

Last week, oil prices went down a bit because some investors decided to take profits after the prices went up in July. The July rally happened because the supply of oil worldwide was getting tighter. Investors hoped that the oil demand would go up in the second half of the year.
However, there was some bad news about the Chinese economy, which is the biggest buyer of crude oil. This news worried investors about the demand for oil and that might have affected the prices.

On the positive side, the International Energy Agency (IEA) says that how much oil we’ll need in the future depends on how fast China and other countries grow their economies. They believe that the oil market will become tighter in the second half of the year, which could push prices higher.
As of today, August 2nd, the price of U.S. WTI crude futures went up by 1% to $82.20 per barrel. This increase was partly because Saudi Arabia and Russia said they might cut down on how much oil they produce. Also, there are concerns about tensions between Russia and Ukraine, which could lead to even less oil available.

Some investors are hopeful that the U.S. economy won’t be badly affected if the Federal Reserve can control inflation despite aggressive monetary policy tightening. If that happens, it could mean that people will use more fuel later this year, as the U.S. is the world’s biggest consumer of oil. The U.S. Federal Reserve revised its expectation that the US economy will fall into recession.
A report by the American Petroleum Institute (API) says that U.S. oil stocks may have dropped by over 15 million barrels last week. This is a good sign because it means that there’s less oil in storage. Gasoline and distillate stocks also went down because of production cuts by Saudi Arabia. This shows that Saudi Arabia is trying to reduce the amount of oil available, especially since China is buying less oil due to their economic problems.
At UpTrendPicks.com, we are waiting to see if the API’s report is correct. If it is, it could continue to push oil prices higher, which have been going up for the past five weeks. Subscribe UpTrendPicks.com. Don’t miss out on your opportunity to access cutting-edge tools, real-time market analysis and expert insights today and unlock your investing potential.

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