Petroleum date in curfew, with news from the sector on radar and pressure of change

The oil futures contracts will date at this terça-feira (6). The commodity showed weakness for part of the day, after three consecutive sessions of gains, with investors attentive to news from the sector and risks of failing demand ahead, on the day of updated projections from the World Bank. No change, or strengthening of the dollar contributed to put pressure on oil prices.

The WTI for July dated 0.57% (US$ 0.41), at US$ 71.74 a barrel, on the New York Mercantile Exchange (Nymex), and the Brent for August recovered 0.55% (US$ 0.42), at US$ 76.29 or barrel, on the Intercontinental Exchange (ICE).

The negative movement has never been seen before, with a drop of more than 1.5%, after the contracts have accumulated robust earnings in the three previous sessions.

At the second fair, the advance was supported by the production cut announced by Saudi Arabia.

In this third, Commerzbank confirmed that there are uncertainties about the effects of the cut in Saudi production for prices. The bank alerts that, if other producers maintain their levels, they must gain market fatia from Saudi Arabia, for this reason there are doubts about their strategy and sustainability.

The Commerzbank via still the other members of the Organization of the Petroleum Exporting Countries and Allies (Opec+) unwilling to support the Saudi court with similar measures, also in a context of uncertainty about the economic outlook.

In this picture, Commerzbank projected that Brent had a moderate price gain, at US$ 90 a barrel by the end of the year.

The Department of Energy (DoE) has published a monthly report, which it revised to top its projection for the average price of a barrel of Brent in 2023, from US$78.65 previously to US$79.54, and also in 2024, from US$74.47 to US$83.51.

The World Bank, in turn, revised up its projection for the global Gross Domestic Product (GDP) in 2023, from 1.7% to 2.1%, shorter than expected for the advance in 2024, from 2.7 % to 2.4%.

At Oanda’s evaluation, oil was pressured by concerns with the global economy, which could translate into weaker demand ahead.

She cited the fact that China is preparing support measures, before the failure, and also that orders from the German industry fell 0.4% in April compared to March, contrary to profit forecasts. In this case, Oanda warns that the barrel of Brent may take more time to exceed the US$ 80 mark.