Commodities and foreign exchange – Rise in oil prices halted for the moment – Economy

HomeEconomy7. October 2021, 6:58 p.m.

Commodities and foreign exchange: The rise in oil prices has momentarily stopped

Surprisingly well-supplied inventories of crude oil in the United States are slowing the price increase in the oil market. The price of a barrel of North Sea oil sometimes falls below the $ 80 mark.

In the oil market, prices have ended their most recent rally yet. At times, a barrel of Brent North Sea crude oil was even cheaper by a good three percent at around $ 79. By the afternoon, the price of Brent had returned to just under $ 81, about the same as the night before. In addition to the surprisingly sharp rise in US inventories, the trigger for the price decline was the government’s deliberations in Washington on launching some of its strategic reserves into the market. This could reduce the supply deficit, said UBS analyst Giovanni Staunovo. If Russia also sends more gas to Europe, fewer suppliers will turn to crude oil as a source of energy. The European natural gas futures contract continued to decline and fell 6.4% to 101.32 euros per megawatt hour.

At the same time, the euro stabilized on the foreign exchange market after its recent losses. The common currency was listed at $ 1.1561, slightly higher than Wednesday. The greenback weakened slightly after a US government default was avoided for the time being. In addition, when readjusting the European Central Bank (ECB) ‘s emergency Corona program, the monetary authorities took into account the anticipation of an end to purchases of securities in the spring. As the September 9 interest rate meeting report shows, this was discussed when it was decided to moderately reduce PEPP bond purchases compared to the two quarters. previous ones. It seemed that the readjustment would not lead to an unreasonable tightening of market interest rates, he said in the notes. The Governing Council also broadly agreed that the outlook for inflation would improve significantly over the coming year.

© SZ of 8 October 2021 / SZ, Reuters, dpa

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