Keep an eye on OPEC supply, crude oil prices are still under pressure
This week's crude oil futures ended in a slight fluctuation, as boosting factors due to an unexpected drastic decline in US crude oil inventories were offset by concerns about demand and mitigation of geopolitical risk premiums.
According to what Tyler Rich, co-editor of the Seventh Report Research, told MarketWatch, the US Consumer Confidence Index announced on Friday was the latest data that “made me feel the smell of stagflation,” and “risk assets didn't like this.”
The University of Michigan's May Consumer Sentiment Index (preliminary value) was 67.4, down from 77.2 in April, far below economists' expectations.
Also, Dallas Federal Reserve (Fed) President Rory Logan stated that interest rate cuts are premature, and it is uncertain whether sufficient monetary tightening is being carried out to reduce the inflation rate targeted by the Fed to 2%.
Nimex Crude Oil (CL1:COM) ended trading at a low price since 3/12, with the 6 month term up to 78.26 dollars, +0.2% compared to the previous weekend, and Brent Crude Oil (CO1:COM)'s monthly period before the July term was 82.79 dollars, -0.2% of the same period.
Although US natural gas (NG1: COM) fell 2.1% on Friday, the previous month of June Nymex gas rose 5.1% to $2.252/mmBTU, spurring recent gains. Natural gas futures surged 43% from the 52-week low of $1.575 on March 26, and prices are close to breakeven a year ago.
According to what Tyler Rich, co-editor of the Seventh Report Research, told MarketWatch, the US Consumer Confidence Index announced on Friday was the latest data that “made me feel the smell of stagflation,” and “risk assets didn't like this.”
The University of Michigan's May Consumer Sentiment Index (preliminary value) was 67.4, down from 77.2 in April, far below economists' expectations.
Also, Dallas Federal Reserve (Fed) President Rory Logan stated that interest rate cuts are premature, and it is uncertain whether sufficient monetary tightening is being carried out to reduce the inflation rate targeted by the Fed to 2%.
Nimex Crude Oil (CL1:COM) ended trading at a low price since 3/12, with the 6 month term up to 78.26 dollars, +0.2% compared to the previous weekend, and Brent Crude Oil (CO1:COM)'s monthly period before the July term was 82.79 dollars, -0.2% of the same period.
Although US natural gas (NG1: COM) fell 2.1% on Friday, the previous month of June Nymex gas rose 5.1% to $2.252/mmBTU, spurring recent gains. Natural gas futures surged 43% from the 52-week low of $1.575 on March 26, and prices are close to breakeven a year ago.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment