Oil prices fell
According to Mehr News Agency to Quoting from Reuters, oil prices retreated from their highest record in the past few weeks and fell in the Asian market on Monday, where traders took profit and waited for the monetary policy meeting of the US Central Bank.
The price of West Texas Intermediate (WTI) was down 30 cents, equivalent to 0.4%, to 70 dollars and 99 cents per barrel. The US oil index rose to the highest level since November 7th in Friday trading.
Concerns about supply disruptions following the tightening of US sanctions against major exporters such as Russia limited the decline in oil prices in today’s trading.
Tony Sycamore, IG market analyst, said about the market trend: After growing more than 6% last week and with oil moving towards its recent record high, there was a slight possibility of profit taking. He added: The price of oil was strengthened by the new EU sanctions on Russian oil last week and expectations for the tightening of US sanctions against OPEC+ members.
US Treasury Secretary Janet Yellen told Reuters on Friday that the United States is seeking more sanctions against “Shadow Fleet” tankers and is not ruling out sanctions on Chinese banks as it seeks to reduce Russia’s oil revenue and limit access to resources. The foreigner is to finance Russia’s war in Ukraine.
Oil prices were also supported by interest rate cuts by the central banks of Canada, Europe and Switzerland last week and expectations for interest rate cuts by the US Federal Reserve this week, according to analyst IG. The Federal Reserve is expected to reduce the interest rate by a quarter percent in its December 17-18 meeting. Also, this meeting will help to understand the views of the Federal Reserve officials regarding the reduction of interest rates in 2025 and 2026.
Decreasing interest rates can increase economic growth and demand for oil.
According to Reuters, however, the International Energy Agency’s forecast of a sufficient supply of oil in 2025 and CNPC’s forecast of a decline in demand for oil in China, the world’s second-largest consumer, are factors that continue to weigh on global oil markets. They affect
