OIL -1.70% Price at four-month low

Done

Oil extends yesterday’s fall, -4%, and slips to the lowest since the beginning of February.

In six weeks the price of Brent has fallen by around 15 dollars a barrel.

The 2024 budget is now nearly even…good news for inflation.

The collapse of the last two days came following the decision of theOPEC+ to extend much of the current round of production cuts until the end of 2025. Investors saw the move as a sign of weakness in the crude oil market outlook.

OPEC+ said it would maintain 3.6 million barrels a day of cuts until the end of 2025 and that cuts of 2.2 million barrels a day would be extended by three months to the end of September this year in the meantime. and will then be phased out from October until September 2025.

Goldman Sachs analysts say the move could be bearish for oil prices.

The cartel said it is waiting to see a broader improvement in economic conditions and a lowering of interest rates before it starts increasing production.

Also signs of weakening in demand growth have weighed on oil prices in recent months, particularly U.S. fuel consumption data. Meanwhile, US manufacturing activity slowed for the second consecutive month in May, while construction spending in April unexpectedly fell for a second month due to declines in non-residential activity, which could translate into higher demand. weak on oil and fuel.

The openings from Hamas and Israel for a lasting truce, capable of easing tensions in the Middle East. Hamas intends to send a delegation to Cairo to discuss the latest proposed agreement on the hostages in Gaza: two officials familiar with the dossier told the Times of Israel. The Palestinian faction, which welcomed Biden’s proposal, has yet to formally present its response, the Israeli newspaper adds.

Effect

Technical Analysis. The short-term trend largely confirmed the signs of weakness observed with the collapse of the 50 and 100 day moving averages. On…