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ComMODITY: Oil is retreating

09/10/2024
Categories: Raw materials

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Shares on Wall Street recovered from before Tuesday, as doubts about China reappeared. However, during a very dispersed week, investors had to deal with the impact of a potentially devastating hurricane in Florida and the fall in oil prices amid tensions in the Middle

East.

US crude oil settled just below $74 per barrel on Wednesday after a 4.5% drop in the previous session. The annual evolution of oil prices continues to record losses of around 14% year-on-year.

Goldman Sachs analysts estimate that the oil market risk premiums they consider have disappeared considerably, with options markets estimating the probability of a $20 per barrel jump at around 5%.

Goldman estimates that this type of increase corresponds to approximately a 6-month interruption of 2 million barrels per day without compensation from OPEC, which would occur over the next month.

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