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Free fall oil. What happens? What to Expect?

Swooping Quotes, PUBLISHED:

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OPEC oil

A violent sell-off is hitting oil, which is rapidly approaching the recent lows for the period. What are the reasons for the lunge?

This first session of the week continues with a strong sell-off for oil which has ended up in the grip of the bears.

Oil swooped after the latest hikes

After the gains of the last few sessions and after closing last Friday’s with an advantage of almost two and a half percentage points, the black gold today immediately showed uncertainty, falling back below the values ​​of last Friday’s close.

There was thus a rapid and progressive retreat which turned into a real collapse.

In the afternoon, the prices of black gold pushed up to the area of ​​92.5 dollars, from which they started a recovery, but remained in sharp decline. As of this writing, the WTI contract is pictured at $ 93.3, with a 5.39% sink.

Oil: sell-off fueled by macro data. Focus on China and Japan

Regardless of the weakening of the dollar, which is not providing any support to prices, black gold is hit by strong sales in the wake of the negative indications coming from the macro front.

Disappointing manufacturing activity figures in July in both China and Japan weigh on investor sentiment.

In the Land of the Dragon, the manufacturing sector index fell last month from 51.7 to 50.4 points, well beyond analysts’ expectations.

Bad news also from Japan, where manufacturing activity saw in July the lowest growth of the last 10 months.

See also  he improved qualitatively, but retained a familiar appearance

That was enough to fuel concerns not only about the prospects for the global economy, but also about the effects this may have on oil demand.

Oil: OPEC + meets on Wednesday. What will he decide?

Meanwhile, according to a survey carried out by Reuters, analysts have cut their forecasts on black gold prices for the first time since April.

In detail, for 2022 Brent is seen on average at $ 105.75 and WTI at $ 101.28. Meanwhile, the attention of investors is already turned to the OPEC + meeting scheduled for Wednesday 4 August.

On this occasion it will be necessary to decide on the production levels for September: some sources have reported the possibility of a slight increase, while others indicate a stability of production.

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