06/22/2022, 08:29 by Josef Weichslberger
Oil prices on the international commodity futures markets remained relatively stable in yesterday’s trading and closed around the starting level. This morning, however, futures in Asian trading have been very weak so far, so much so that diesel prices in Germany are likely to start the day with a nice discount.
August contracts for European North Sea “Brent” oil are currently at $ 110.25 per barrel, a barrel of US “West Texas Intermediate” oil costs $ 105.15 per hour. The euro is posting slight losses against the US dollar, which traded at around US $ 1.0495 this morning.
Yesterday was relatively quiet on the international oil exchanges. There was hardly any new moving news for the market, so crude oil prices moved sideways in a rather narrow trading range compared to the past few weeks and months.
It is still unclear why there was a strong bearish move in Asia this morning, especially since the little news available at the moment suggests that oil prices will continue to rise.
Yesterday it was announced that Norway’s oil production fell again in May. The official forecasts had already been routinely dropped in the previous months, so it probably wasn’t a surprise.
The oil company chief ExxonMobil’s expectation that the supply situation on the oil markets will remain tense for the next three to five years would actually be bullish, i.e. price-pushing.
However, stock market traders’ growing fears of a recession are certainly having a price pressure effect these days. Rising interest rates and high commodity prices are likely to create problems for the global economy in the near future.
Due to a holiday, the American Petroleum Institute (API) weekly US oil inventory data will not be released until tonight after the US market closes. The much more comprehensive and influential figures from the Department of Energy (DOE) will follow tomorrow.
Not much happened yesterday on the foreign exchange market either. The euro ended the session slightly changed against the US dollar and is falling slightly this morning. Economic data reported yesterday on both sides of the Atlantic was relatively unspectacular.
Fortunately, thanks to the significant drop in crude oil and diesel prices, heating oil prices in Germany are starting to trade today at significant discounts. Current calculations and initial price trends suggest a drop of around 2-3 cents per liter. Therefore, the sideways trend that has been in place for about two weeks has continued at high levels so far. Even though the demand has increased slightly in the past few days, the order volume remains quite low in relation to the price requests.
Other market reports
Tuesday, 21/06/2022 at 08:32
Unfortunately, oil prices recovered quickly after Friday’s setback and added up to this morning’s Asian-dominated trading. As a result, heating oil prices in Germany will unfortunately begin to trade at a significant advantage.
Monday, 06/20/2022, 08:41
Oil prices came under severe pressure during Friday’s final trading and are starting the new trading week at a significantly lower level. As a result, heating oil prices in this country are also expected to decline significantly.