G7 summit push prices higher
Oil prices moved up yesterday : ICE Brent settled at $115.09/b making a 1.7% gain. And NYMEX WTI front month closed at $109.57/b, that is…
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Yesterday, oil continued to climb back, NYMEX WTI contract for August delivery (now the front month), that did not trade on Monday, gained +1.4% to settle at $109.52/b. And ICE Brent front month moved 0.5% up to end the session at $114.65/b.
Last week price drop, caused by the decision made by major central banks to hike rates, was gradually erased as the market is still under pressure from a high demand and short supplies due to the embargoes on Russian oil and to various countries that are not significantly raising output. Exxon CEO, commented yesterday that the market will remain tight for three to five years.
To ease gasoline prices in the US, currently at $4.97/gal, very high, but slightly below the historic record level seen a few days ago, the Whitehouse could announce today a pause on the Federal tax on gasoline. This tax currently stands at ¢18.4/gal (or 4% of total price).
On the agenda today is the publication of API inventory, most analysts are forecasting a decline. And President Biden will meet with top executives of US energy firms to find a way to lower prices. For now, oil is falling sharply: ICE Brent is losing -4.1%.