Brent Is Again on A Downward Path

On the London market, the price of oil is currently $84.08, while on the American market, the value of a barrel fell to $77.12, according to data published on the website OilPrice.com.

At the beginning of this week’s trade, prices rose due to tensions in the Middle East after a drone attack in Iran, the Mina agency reports.

“It is not yet clear what is happening in Iran, but there is no doubt that a potential escalation would disrupt the flow of crude oil,” said Stefano Grasso of the Singapore company 8VantEdge.

During the day, the focus shifted to this week’s schedule and meetings of the American and European Central Banks (ECB), which, as expected, should raise key interest rates again by a quarter and a half of a percentage point, respectively. The Federal Reserve (Fed) will announce its decision tomorrow and the ECB on Thursday.

Russian supply gets stronger

Central banks are trying to curb high inflation by raising borrowing costs, but markets fear this will slow down economic activity and, thus, oil demand.

Prices were also pressured by indications of strong Russian supply, despite the European embargo and the price limit imposed on Russian oil by the Group of Seven Most Developed Countries (G7) and their partners.

Traders will also be closely following the meeting of the Organization of the Petroleum Exporting Countries (OPEC) ministers and its allies this week, who will reconsider the production policy.

“OPEC+ is unlikely to change policy, but could surprise markets with a small cut,” said an oil broker from PVM.

On Friday, OPEC announced that a barrel of its members’ oil basket rose to $85.31.