Uncertainty in the US Causes Oil Prices to Fluctuate

Uncertainty in the US Causes Oil Prices to Fluctuate

Uncertainty in the USA causes fluctuations in oil prices. The American Petroleum Institute's estimation of the decrease in crude oil stocks stimulated the markets. On the other hand, oil was mixed in Asia on Wednesday, amid concerns about signs of recovery in US fuel demand. With an increase of 0.36 percent, the barrel of Brent oil was $ 45.19; West Texas type crude oil (WTI), which lost 0.40 percent, dropped to $ 42.72. The American Petroleum Institute (API) reporting a drop of 4.264 million barrels for the week ending August 14 exceeded analysts' forecasts. Analysts' estimates were that the number of barrels would drop by 2.9 million. In addition to these, investors were also worried that there was no agreement on the $ 1 trillion stimulus package expected to be given in the USA.

It Is Out Of The Question To Cut The Offer In Half

In the US Congress talks, House Spokesperson Nancy Pelosi hinted that Democrats wanted to 'halve' their offer of incentives to deal with Republicans. But Drew Hammil says that this is not the case; He stated that Pelosi was not talking about 'halving our offer' but 'meeting in the middle', which was his previous stance on meeting with Republicans. A comment on the subject also came from Hiroyuki Kikukawa. "As the US economic stimulus package does not appear on the horizon and US-Sino trade talks are delayed, demand concerns are suppressing oil prices," said Kikukawa, General Director of Research at Nissan Securities. Kikukawa, expecting the prices to remain in a narrow range, continued as follows: '' ... but with positive news such as a drop in US crude stocks, losses were limited. '' Nowadays, investors have turned their eyes to the joint ministries monitoring committee (JMMC) meeting of OPEC. The meeting, which was discussed to be held on August 18 and that OPEC + members will evaluate the commitment to production cuts, has been postponed until today. It is said that Russian Energy Minister Alexander Novak will attend the meeting via videoconference, despite the coronavirus (Covid-19) test positive on Tuesday.