Investorideas.com

Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS




Share on StockTwits

Oil prices continue to decline at the beginning of the week despite concerns about supply restrictions

Today's Market analysis on behalf of Samer Hasn Market Analyst and part of the Research Team at XS.com

 

October 23, 2023 (Investorideas.com Newswire) Crude oil prices have continued to decline since last Friday, after a series of gains that led to the highest levels in about twenty days. West Texas Intermediate (WTI) oil futures fell by 0.6% to $87.55 per barrel at approximately 12:00 noon GMT. Brent crude oil futures also fell by approximately the same percentage, reaching the level of $91.75 per barrel.

These declines during the past two sessions come with increasing talk about the possibility of containing the ongoing conflict in the Middle East and the efforts of international community to ensure that it does not go outside its usual borders or enter parties from inside or outside the region to fuel the conflict and get it out of control, which may threaten oil supplies.

On the other hand, we continue to see more bullish signals and expectations supporting oil’s rise. The National Bank of Canada believes that the United States is no longer able to make further withdrawals from strategic reserves in order to reduce oil prices, which may keep inventory levels below the historical average.

Commerzbank also believes that oil prices may be supported by concerns about oil supplies remaining at high levels, with the conflict in the Middle East continuing and fears of its expansion. Almost the same thing is believed by ANZ Bank, as the bank sees that the expansion of the conflict may disrupt the supply of global markets with about 20 million barrels of crude oil per day.

On the economic side, we witnessed a noticeable rise in ten-year US Treasury bond yields, compared to a decline in two-year yields. These opposing dynamics have contributed to reducing the gap between the yields of these bonds to the lowest levels since mid-July of last year, at 0.129%.

I believe that this mixed performance in bond yields and the rapid trend of the yield curve towards the positive region may reflect the underlying positive sentiment in the markets towards the growth of the US economy, which may continue to provide more support for oil. The rise in ten-year bond yields reflects the markets' optimism about the US economy's ability to actually avoid recession despite the record high interest rates, and this is what we have begun to see clearly with the third quarter earnings results season, in which companies continued to record better results than expected for most of them.

In addition, the decline in short-term bond yields reflects market expectations that the Fed will end its cycle of raising interest rates, despite the Fed’s repeated talk about the possibility of raising interest rates to curb faster-than-average economic growth that contributes to fueling inflation.

Moreover, the eurozone countries continue to show more positive economic numbers, which indicate the possibility of the countries of the region to restore growth and stop the contraction, whether at the level of manufacturing or services activities.

More Info:


Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


That's all it takes to get an article published on Investor Ideas - Learn More





Get more Oil and Gas - news, articles, and stock directories

Buy a energy guest post on Investorideas.com