After hitting its highest level since October of last year last Friday, oil prices have fallen markedly since early this morning, with Brent and West Texas Intermediate (WTI) both hitting 2.32%, but the decline was small. It shrunk to about 0.4%.
Oil prices fell from the start of the day on expectations that the Middle East conflict would subside with progress in ceasefire negotiations in the Gaza Strip.
Oil prices were supported by German industrial production, which grew much better than expected and at its fastest pace in a year, while pessimism among euro zone investors was at its lowest in more than two years. This also contributed to the decline in crude oil prices. Previous severe oil losses.
My remarks come amid mounting pressure from the international community, led by the United States, which is now in election season after a series of bloody events last week that fueled fears that the conflict may have gotten completely out of control. We witnessed talk of progress in ceasefire negotiations. .
In terms of today's data, German industrial production in February grew by a much stronger than expected 2.1% on a monthly basis, compared to an expected 0.6% growth and the fastest pace since January last year. This resulted in an increase in
This supported growth in the automotive and chemical industries, as well as the construction sector, at the expense of a sharp decline in electrical energy production.
Also today, we witnessed the lowest level of investor pessimism in the Eurozone through the Centix Investor Sentiment Index. The index hit a two-year high of -5.9 in April this year, which was higher than the expected -8.3.
However, despite a series of positive economic indicators for the U.S. economy, concerns about rising long-term interest rates could eventually reignite, disrupting the upward trajectory of energy markets that have been anticipating widespread interest rate cuts. There is. This year it will be held around the world to stimulate demand and economic activity.
The probability that the US Federal Reserve (Fed) will cut interest rates by 25 basis points next June fell below 46% today, the lowest level since February last year, meaning that June is attracting attention as a starting point for a path to monetary easing. It's almost the lowest it's been since we got together. policy.
