On Monday, U.S. crude oil futures struggled to maintain levels above $80, partly due to comments from Federal Reserve officials expressing reservations about inflation trends.
The officials emphasized the uncertainty surrounding whether inflation will reach the central bank's 2% target and indicated they are waiting for further evidence before considering any interest rate adjustments.The tragic helicopter crash on Sunday that claimed the lives of Iran's president and foreign minister, attributed to poor weather conditions, did not have a significant impact on the oil market. It is believed that Iran's oil policies will remain consistent, given that Supreme Leader Ayatollah Ali Khamenei retains ultimate authority in the country.
Despite expectations for a rise in oil prices following the unfortunate incident, prices actually decreased. This unexpected outcome contradicted the anticipated strengthening of risk premiums. FxPro analyst Alex Kuptsikevich pointed out a surge in metals and other commodities as a response to China's stimulus measures.
ING's head of commodity strategy, Warren Patterson, observed that geopolitical dynamics seem to be having little effect on the oil market, likely due to the significant spare capacity held by OPEC. As of the market close, front-month Nymex crude for June delivery settled at $79.80/bbl, and front-month July Brent crude closed at $83.71/bbl, ending a three-session winning streak for both benchmarks.
In April, Russian oil exports to China notably increased by 30% compared to the same period last year, as reported by Reuters. This surge in exports underscores Russia's position as China's top supplier for the past year, reflecting changes in export patterns following the implementation of the G-7 oil price cap and other sanctions.
English (US)