loss in crude oil prices: BRENT and WTI

Oil prices have been experiencing heavy losses in the last 24 hours after reaching highs in almost two years. Weekly political and economic events are affecting expectations about WTI and BRENT international benchmarks.

It is known that in the face of political events of international relevance, generate economic expectations that are absorbed in prices and projections on the same. The FOMC meeting and subsequent statements on future monetary policy guidelines and interest rate decision.

The FED decided to maintain interest rates and the rhythm of asset purchases, although it mentions the possibility of changes in the rate for the year 2023. This decision strengthened the dollar, resulting in effects on oil prices. In turn, the rise in oil prices against other currencies could affect demand.

This Friday presidential elections will be held in Iran, which on the eve of the electoral results, the new government, will decline the nuclear talks. Polls speak of a possible victory for conservative Ebrahim Raisi. Although France has announced that to continue with the talks, the new cabinet must conform and thereafter resume, the truth is that the talks have been channeled by the agreement.

The controversies and discussions surrounding the negotiations on a new nuclear agreement raise a possible lifting of the sanctions stipulated on oil and gas exports in Iran. This could lead to an increase in supply that liquefies prices.

Part of the expectations that will be reflected in prices will be found in the results of the elections in Iran and the channel of the talks that will take place between the parties to the Nuclear Agreement.

BRENT futures fell yesterday afternoon after hitting a more than two-year high of $ 74.81 a barrel of oil. This Thursday it touched its low of $ 72.52 dbp. At 15.10 GMT -3 today, the price is $ 72.84.

The WTI indicator maintained a similar behavior, reaching a historical maximum of $ 72.9 dollars a barrel of oil. On Thursday it reached the minimum of $ 70.36dbp and, at 15.10 GMT -3, today, the price of WTI is $ 70.8.