Oil prices are moderately falling during Asian trading on Tuesday after strong growth the day before, after which WTI futures closed above $100 per barrel.
The price of September futures for Brent on the London ICE Futures exchange by 8:15 on Tuesday is $105.78 per barrel, which is $0.49 (0.46%) lower than the closing price of the previous session. As a result of trading on Monday, these contracts rose in price by $5.11 (5.1%) to $106.27 per barrel.
The price of futures for WTI for August in the electronic trading of the New York Mercantile Exchange (NYMEX) is $102.3 per barrel by this time, which is $0.3 (0.29%) lower than the final value of the previous session. By the close of the market on Monday, the value of these contracts increased by $5.01 (5.1%) to $102.60 per barrel.
The rise in prices the day before was caused by two main factors – market participants’ assessment of the results of US President Joe Biden’s visit to Saudi Arabia and the depreciation of the dollar.
As reported, Biden discussed with the leadership of Saudi Arabia the issue of oil supplies to the world market and called this discussion „positive”, but investors felt that the country would not significantly increase production and export of fuel.
„OPEC+ will continue to control oil supplies, and one country will not be able to determine the size of the supply – at least that’s the message traders received from Biden’s visit to Saudi Arabia,” said Naeem Aslam, senior market analyst at AvaTrade.
In the meantime, the dollar, which has grown significantly in recent weeks on expectations of a tightening of the monetary policy of the Federal Reserve System (Fed), fell on Monday against major world currencies, which provided additional support to oil quotes.