The Impact of Middle East Tensions on Oil Prices
Oil prices are declining on Tuesday, extending losses from the previous session, amid concerns over demand in China, the world’s largest importer of crude oil. Meanwhile, the market managed to shake off the risk of escalation in the Middle East conflict, according to Reuters.
Oil futures for Brent crude fell by 32 cents, or 0.4%, to $79.46. The fading worries in the Middle East also affected the price of “black gold.”
Oil prices drop as Chinese economic data disappoints
Prices on the American West Texas Intermediate (WTI) oil barrel fell by 36 cents, or 0.5%, to $75.45 per barrel.
Chinese economic data shakes markets
A series of disappointing economic data from China has shaken the markets recently. Manufacturing activity in the country likely contracted for the third month in July, according to a Reuters survey on Monday.
Also on Monday, Citi lowered its growth forecast for the Celestial Empire from 5% to 4.8%, after the country’s growth in the second quarter did not meet analysts’ expectations.
In the previous trading session, “black” oil prices fell due to concerns about weakening demand in the face of the ongoing pandemic and economic uncertainty.
на опозицията във Венецуела“ се оказа загадъчна, като официалните резултати на изборите показват несъответствие с обявените от опозицията. Това предизвика сериозни протести и спорове по улиците на страната.
Venezuela’s Political Turmoil
In Venezuela, the opposition claimed victory with 73% of the votes in the presidential elections, despite the national electoral body declaring incumbent leader Nicolas Maduro as the winner, securing him a third term in office.
The opposition’s victory in Venezuela turned out to be controversial, as official election results did not align with those announced by the opposition. This led to serious protests and disputes on the streets of the country.
The Challenge of the Latest Elections in Venezuela
Analysts at ANZ believe that the recent elections in Venezuela, won by Nicolas Maduro, pose a challenge to the global supply as they could lead to tighter sanctions from the US. They estimate that this could reduce the country’s exports by 100-120 thousand barrels per day.
Doubts Over Election Results
The governments in Washington and other countries have expressed doubts over the results of the elections, leading to protests in cities across Venezuela on Monday.
*Data is current as of 9:00 AM Bulgarian time.
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