Wednesday, May 31, 2023

Texas oil lost 5.3% and closes at $71.66 a barrel

The purchasing manager’s index (PMI, an indicator for the manufacturing sector) stood at 49.2 points, below 51.9 in March

The price of Texas Intermediate (WTI) oil closed this Tuesday down 5.3% at $71.66 a barrel, four days of losses with investors awaiting the conclusion of the US Fed support meeting tomorrow, and still digesting the latest Chinese manufacturing data.

At the close of business in New York, a barrel of WTI for June delivery was down $4 compared to the previous day and was losing the psychological barrier of $75 a barrel.

Hey Petroleum US benchmarks have already opened up more serious fears of a drop in demand in China after it was announced over the weekend that the industry in that country – the world’s largest consumer – will contract in April for the first time in 2023. Below is what the analysts had anticipated.

The purchasing manager’s index (PMI, a reference indicator for the manufacturing sector) stood at 49.2 points, below 51.9 in March and far from what had been predicted by experts, who had predicted that it would reach 51.5.

Also, H, which will meet today and tomorrow, is expected to try to raise interest from another 25 funds, although some analysts expect them to start delaying the hikes.

Raising interest rates to control inflation has made the dollar more expensive and slowed the economy, and many analysts have warned for months that if H does not change monetary policy, the United States could be headed for a recession.

Another factor behind this drop is the recent collapse of First Republic Bank and its purchase by JPMorgan Chase and the fear of a banking crisis that arose in March has not ended.

The analyst of the firm Oanda Craig Erlam pointed out that the rise of gold described in the black has already been erased after OPEC announced new cuts in pumping oil.

For Erlam, this “suggests that traders now think that the economic outlook has deteriorated to the point that production cuts will not create the deficit that was feared when some called for prices to go to $100 a barrel.”

In contrast, June natural gas futures fell $0.1 to $2.21, and June gasoline futures fell $0.11 to $2.43.

World Nation News Desk
World Nation News Desk
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