Oil closes modestly lower, lacking momentum after rising earlier

Oil futures contracts showed gains for much of this Monday (17) helped by the retreat of the dollar and by the environment of greater propensity to risk in international markets in general.

The commodity, however, ended up reversing the sign, very close to stability, with a focus on signs of the Chinese economy on the radar of investors.

WTI crude for November closed down 0.18% ($0.15) at $85.46 a barrel on the New York Mercantile Exchange (Nymex), and Brent for December fell 0.01% ( US$0.01), at US$91.62 a barrel, on the Intercontinental Exchange (ICE).

Capital Economics already stated, in a report to clients, that China would be in focus this week in the commodity market.

The consultancy believed that any news from the Communist Party Congress would be insufficient to allay fears about demand for commodities, and had already hoped that officials would not reverse their policy of targeting zero Covid-19 cases.

In fact, Chinese President Xi Jinping defined his government’s strategy in the pandemic as a success, without signaling changes.

For Julius Baer, ​​Xi made it clear that there will be no changes to the zero covid policy, but the bank also did not expect a great reaction from the market in the face of this, considering that investors were already prepared for this outcome.

Also on the radar was the fact that China delayed the release of indicators, including the Gross Domestic Product (GDP) for the third quarter, without giving reasons.

TD Securities, meanwhile, says that a recent rise in Covid-19 cases in some areas of China continues to weigh on prices, “despite a continued increase in supply risks.”

The bank says it sees vulnerabilities that could result in downside risk to prices, but also believes demand for oil will remain high.

Source: CNN Brasil

You may also like