PT Solid Gold Berjangka | Oil Steadies as Focus Shifts to US Stockpiles and Fed’s Decision

01:23 20 March in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Minyak Minyak Mentah Oil, PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | Thank you for providing the update on the oil market. Here’s a summary of the key points:

  • Oil Prices: Oil prices steadied after a two-day gain, with Brent remaining little changed above $87 a barrel and West Texas Intermediate (WTI) near $83. Brent had a 2.4% advance in the first two sessions of the week, reaching its highest close since late October.
  • US Crude Stockpiles: The American Petroleum Institute (API) reported a 1.5 million barrel decline in US crude oil inventories. Additionally, there was a significant drop in gasoline inventories, which can impact prices.
  • Federal Reserve Interest Rate Decision: Traders are awaiting the Federal Reserve’s interest rate decision, expected to hold steady for a fifth consecutive meeting. There is speculation about potential hints on when the Fed might pivot to easing. Some, like Carlyle Group LP’s Jeff Currie, suggest that oil could rise above the current consensus range of $70 to $90 a barrel if the Fed cuts interest rates in the coming months.
  • Factors Supporting Oil Prices: Oil has seen a 13% climb this year, breaking out of a tight trading range observed earlier in 2024. Factors supporting this rise include supply cuts by OPEC+ and geopolitical risks, such as Ukrainian drone strikes on Russian refineries.
  • Market Indicators: Oil’s timespreads indicate a tighter market, with the spread between Brent’s two upcoming December contracts widening to more than $5 a barrel in backwardation. Backwardation is a bullish pattern where the nearer price is more expensive than the future price. This spread was less than $4 a month ago.
  • Current Prices: Brent for May settlement was 0.3% lower at $87.11 a barrel, while WTI for April delivery, expiring Wednesday, declined 0.4% to $83.12 a barrel. The more-active May contract was 0.4% lower at $82.43 a barrel.

(Source: Bloomberg)