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Oil starts losses, US West Texas Intermediate drops below $104

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May 3, 2022 | 7:58 am

The oil prices It’s running low on Tuesday, with United States WTI Below $104 a barrel, as investors anticipate closings COVID-19 in China Against imminent EU action to curb Russian fuel purchases.

7:40 a.m. (Mexico City time), June oil contract West Texas Intermediate It fell 1.2% to $103.87; at the same time North Sea Brent For delivery in July it fell 0.25% to 107.31 dollars per barrel, according to Bloomberg data.

This morning, WTI prices are down 1.2%, reflecting Revenues from the previous day. Crude oil has fluctuated within the $15 range in recent weeks as the market assesses the impact on demand from the COVID-19 wave in China, while supply concerns remain amid the crisis in Ukraine.

In addition, investors are preparing for highest height rates in the United States since 2000.

Read also: Pemex does not rule out more support from the Treasury to deal with short-term debt

volatility continues

after the invasion Russian President Vladimir PutinOil is struggling to make further progress as a combination of lower demand from China and lower supplies from Russia triggered a period volatility This increased the cost of trading and forced some in the market to remain on the sidelines.

We have low inventories around the world, we have low spare capacity around the world, and we have a lot of uncertainty. All of these things lead to a lot of volatility and we can expect that volatility to continue.

Bernard Looney, BP CEO, told Bloomberg.

He added that about one million barrels per day of Russian crude is idle, a figure that could double this month.

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The European Commission is ready to propose a ban on Russian oil By the end of the year, with import restrictions gradually in place until then, according to people familiar with the matter.

At present, the most narrow pocket of the oil market is located in diesel. Record fuel exports from the US Gulf Coast are draining domestic supplies, pushing diesel margins to a new high. Retail prices have peaked in recent days.

Continue reading: Pemex reverses its losses and makes a profit of 122,494 million pesos in the first quarter of 22

With information from Bloomberg

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