Friday's crude gains come despite talk about the possibility of a temporary cease in the conflict in Gaza and also come in anticipation of a series of data from the US labour market that will help markets strengthen their expectations about the path of monetary policy for the rest of this year.
Markets are also reacting to talk about OPEC+'s intention to extend the oil production cut, by 2.2 million barrels per day, in the second half, especially if weak demand continues.
While the trend to keep interest rates for a much longer period than expected may extend the period of weak demand as well and keep crude prices under downward pressure, while the only thing left to support prices may be further deterioration of the conflict, whether in the Middle East or in Ukraine.
#crude-oil-prices #geopolitical-tensions #us-labor-market-data #opec-production-cut #interest-rates-impact
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