Oil prices on the New York fuel exchange are falling sharply because no new support for the economy has been announced in China, which is causing a risk-averse mood among investors on the markets, brokers say. This is not the only factor that strongly influences the price of the raw material.
A barrel of West Texas Intermediate crude oil for delivery on November 11 costs USD 75.80 on the NYMEX in New York, down by 1.74%.
Brent on ICE for XII is priced at USD 79.57 per barrel, after a discount of 1.68%.
Investors feel disappointed because they were counting on the announcement of further actions by the Chinese authorities to support the economy.
China is supposed to stimulate the economy, but there are no details
During Tuesday's briefing, Chinese representatives of the National Development and Reform Commission (NDRC) indicated that they were confident of achieving by China economic goals this year and promised further support for economic growth, although they refrained from citing new measures to stimulate the economy.
The long-awaited conference of this committee ended without any new promises to increase government spending China's economywhile investors expected the announcement of aggressive new stimulus measures, which would complement a series of measures previously announced by the Chinese authorities to stimulate the struggling economy.
“There were earlier rumors that the NDRC might announce another multi-trillion yuan economic support package, but nothing like that has emerged,” said Hang Jiang, head of trading at Yonggang Resources.
Escalation of the conflict in the Middle East
Analysts also indicate that the oil market remains susceptible to greater volatility due to the escalating conflict in the Middle East.
Israel it has been bombarding intensively for two weeks Lebanonand for a week he has been conducting a land operation in the south of this country, emphasizing that his target is Hezbollah terrorists. Powered by Iran the organization has been fighting Israel with varying intensity for decades, and since the outbreak of the war in the Gaza Strip a year ago, it has been shelling the north of the Jewish state, which is met with strong counterattacks.
Anniversary of the Hamas attack on IsraelEPA/ABIR SULTAN
The Middle East region accounts for nearly 1/3 of global oil supply, and the president USA Joe Biden tries to discourage Israel from attacking Iran's oil fields.
Meanwhile, another threat to fuel markets comes from Hurricane Milton, which is heading towards Florida.
Category 5 Hurricane Milton is approaching the Gulf Coast of Florida, including the Tampa Bay area, which has not experienced such a severe storm in over a century.
On Monday, Hurricane Milton rapidly intensified, with wind speeds reaching 290 km/h.
Milton's center could reach the coast Wednesday in the Tampa Bay region.
Meteorologists expect the element to weaken slightly before reaching land. However, it may retain hurricane strength as it moves through Central Florida toward the Atlantic Ocean.
Authorities on the Yucatan Peninsula in Mexico issued evacuation notices due to forecasted waves of 6 meters high.
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