WTI crude closed down 35 cents on concerns over slowing demand trends: InfoQuest

West Texas Intermediate (WTI) crude futures in New York closed negative for a second day in a row on Monday (July 22) as investors fretted over rising oil inventories, a sign of weak demand.

• The West Texas Intermediate crude contract is due for delivery in August. Oil fell 35 cents, or 0.44%, to close at $79.78 a barrel.
• Brent crude futures (BRENT) are due for delivery in September. Oil fell 23 cents, or 0.28%, to close at $82.40 a barrel.

Investors are initially reacting to the news that US President Joe Biden has announced his withdrawal from running for the US presidency in 2024 and his support for US Vice President Kamala Harris. To be the representative of the Democratic Party to run for the presidency of the United States in November of this year. Competing with Mr. Donald Trump, the representative of the Republican Party.

But then investors shrugged off the news. Turning our attention to oil supply and demand, Alex Hood, an analyst at StoneX, said global oil inventories rose last week. Meanwhile, inventories of oil and refined oil products in almost all major trading hubs are trending higher. Except for Europe

Energy policy is likely to be a topic of debate between Ms. Harris and Mr. Trump, but Citigroup analysts believe that neither of the two presidential contenders may promote policies to boost the energy sector that would have an impact on oil and gas operations.

China, a major oil importer, surprised the market by announcing a cut in short-term interest rates and a cut in its key lending rate yesterday, but China has cut interest rates so low that oil prices cannot be supported, said Giovanni Staunovo, an analyst at UBS.

Investors are awaiting the Federal Reserve meeting on July 30-31, which is expected to keep interest rates at the same level. However, the Fed is expected to make a decision on cutting interest rates at its September meeting.

By InfoQuest News Agency (July 23, 2024)

Tags: WTI, WTI, Oil Price