Oil prices decreased by 1% Monday due to the fears that the US rates on Canada, Mexico and China make economies all over the world and reduce the demand for energy, while Opec+ increases its offer.
Futures on Brent oil closed at $ 69.28 per barrel, a drop of $ 1.08 or 1.5%. The intermediate future of the United States western Texas were $ 66.03 per barrel, with a drop of $ 1.01, or 1.5%.
Last week he scored the seventh consecutive weekly fall of WTI, the longest series of losses since November 2023, while Brent fell for the third consecutive week.
The protectionist policies of the President of the United States Donald Trump have aroused markets all over the world, with imposing Trump and then that refer the rates on the largest oil suppliers in his country – Canada and Mexico – and also increasing rates on Chinese products. China and Canada responded with their rates.
“This market is pending and there is a lot to elaborate as we advance,” said John Kilduff, a partner of Again Capital in New York. “There are voices of recession in the United States and this is very worrying for the macroeconomic picture.”
During the weekend, the secretary of the United States trade, Howard Lutnick, said that Trump would not reduce pressure on Mexico, Canada and China rates.
Investors are now worried about a possible economic slowdown that could reduce the demand for oil. The actions, which are often accompanied by oil prices, have continued to fall accentuated between concerns with rates, with the S&P 500 reference index which decreases by 2% in the middle of the day and the Nasdaq composite that drops more than 3%.
On Friday, the Russian vice-master-minister Alexander Novak said that the OPEC+ group has agreed to start increasing oil production since April, but it could subsequently reverse the decision if there are imbalances on the market.
Furthermore, as regards the supply, Trump is trying to suffocate the oil exports of Iran as part of the efforts to press Tehran to control his nuclear program. Iranian supreme leader Ayatollah Ali Khamenei said on Saturday that his country will not be intimidated to negotiate.
Source: Terra
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