Oil prices rose today after the European Union agreed to cut oil imports from Russia, raising fears that a market already jittery due to high summer demand in the United States and Europe is reeling.
Thus, the price of Brent crude in a maximum of two months when it touches $ 122.80 a barrel, futures contracts for European stock markets quote with cuts. Today, investors will get the signal from Wall Street, which closed yesterday for a holiday. Ibex futures were down 0.15% after the index closed yesterday in charts at 8,930.8 points.
On the macro level and after knowing German inflation yesterday, the first estimate of the evolution of the Eurozone CPI in May will be published today, with the consensus of analysts expecting it to rise slightly to 7.6% annually compared to 7.4%. In April and March. A development that would reflect rising inflationary pressures, especially energy and food products, which were exacerbated by the war in Ukraine and problems in supply chains.
US Treasuries slid, sending the 10-year bond yield up nearly 10 basis points to 2.8405%.
German bond yields rose 8.1 basis points overnight after German consumer prices rose at their fastest pace in half a century, bolstering the case for an interest rate hike from the European Central Bank in July.
Brent crude for July, due on Tuesday, rose $1.13 to a two-month high of $122.80 a barrel. US West Texas Intermediate (WTI) crude futures are trading at $118.25 a barrel, up $3.18 from Friday’s close.
European Union leaders agreed in principle to cut 90% of Russia’s oil imports by the end of 2022, resolving the impasse with Hungary over the bloc’s toughest sanctions on Moscow since the invasion of Ukraine three months ago.
“It’s definitely very bullish for the price of oil based on supply tensions,” said Tina Ting, market analyst at CMC Markets. “The price of oil is now heading to its highest in March.”
Oil prices jumped in March to their highest level since 2008 and are up more than 55% so far this year. They should get more support as demand from China is expected to pick up after the easing of COVID-19 restrictions.
Shanghai has announced the end of its two-month lockdown and will allow the vast majority of people in China’s largest city to leave their homes and drive their cars from Wednesday.
On the production front, OPEC + will stick to last year’s agreement at its meeting on Thursday, with July production rising slightly to 432,000 barrels per day, six OPEC + sources said, rejecting Western calls for a faster increase to reduce the price increase.
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