(New York) Oil prices hesitated on Friday to end slightly lower, looking for favorable signs on the demand side and awaiting clarification on the trajectory of American inflation, therefore from the Fed and rates.
The price of a barrel of Brent from the North Sea, for delivery in August, ended slightly down 0.15% at $82.62.
Its American equivalent, the barrel of West Texas Intermediate (WTI), for delivery in July, fell 0.21% to 78.45 dollars.
“Prices have been very indecisive,” commented Phil Flynn of Price Futures Group, indicating that prices changed direction lower after the release of the consumer confidence index.
This continued to deteriorate in June according to the preliminary estimate from the University of Michigan, published Friday. “Plus the inflation component of the survey came out higher,” Mr. Flynn said.
“The market remains focused on inflation and the Fed”, watching for when the central bank will ease its policy which should revive energy demand.
The strength of the dollar, which gained another 0.31% against the euro on Friday around 4 p.m. (Eastern time), was unfavorable for crude prices. As oil is exchanged in dollars, a more expensive note increases the price of black gold.
By climbing at the start of the session, prices at the same time reflected expectations of better fuel consumption with the start of the car travel season in the United States.
Meanwhile, this week, oil’s momentum was dampened by a “surprise” jump in US inventories, Exinity analyst Han Tan noted in a note to AFP.
The report on US inventories from the US Energy Information Administration (EIA) showed on Wednesday an increase in crude reserves of 3.7 million barrels during the week ended June 7, a factor in easing prices .
The next weekly report on U.S. commercial stocks will be released a day late on Thursday, due to a holiday on Wednesday.
Furthermore, “the battle for forecasts continues between the International Energy Agency (IEA), which warns of a glut, and OPEC, which speaks of a ‘tight future market'”, this which “doesn’t help the market in its quest for clarity,” adds John Evans, analyst at PVM Energy.