Oil Prices Drop Due To European Inflation And Strengthening US Dollars

Illustration - Barel oil with falling price graph. (photo: dock. between)

JAKARTA - Oil prices lost growth momentum and experienced material declines at the end of trading Wednesday (Thursday morning WIB), due to persistent inflation from Europe dampening sentiment amid US dollar strengthening following concerns that the increase in US interest rates could curb energy demand in major world consumers. West Texas Intermediate (WTI) crude futures for May delivery, slumped 1.70 US dollars or 2.10 percent, to settle at 79.16 US dollars per barrel in the New York Mercantile Exchange. Brent crude oil for delivery in June fell 1.65 dollars, or 1.65 percent, to close at 83.12 dollars per barrel in the London ICE Futures Exchange.The harmonization index of consumer prices for the euro zone in March grew 0.9 percent month into months, higher than the 0.8 percent increase in the previous month, according to data issued by Eurostat, the European Union's statistical office, on Wednesday 19 April. The UK consumer price index in March increased 10.1 percent year into years, higher than the market forecast consensus of 9.8 percent. The heat inflation from Europe and strengthening of the US dollar burdens the risk assets, with crude oil benchmark prices probing the lowest positions, according to US energy consulting firms, Ritterbusch & Associates. The stronger US dollars could also undermine global demand for oil because it makes it more expensive in other countries. Investors are also disappointed with the still high inflation in Europe and uneven economic data in China, the world's largest crude oil importers." The crude oil benchmark price probes... the lowest... as a response to the strengthening of the US dollar which in turn burdens on assets-assets risk following some hot inflation data from Europe, "said an analyst at energy consulting firm firm Ritterbusch and Associates.

"Kami masih percaya bahwa pasar terlalu fokus pada sisi penawaran dari penyamaan minyak global setelah pengurangan produksi OPEC dan permintaan minyak dunia secara signifikan lebih lemah daripada yang dirasakan secara luas," kata catatan itu.Selain itu, stok bensin AS mengalami peningkatan besar sebesar 1,3 juta barel dalam pekan yang berakhir 14 April, meskipun persediaan minyak mentah komersial AS mencatat penurunan lebih besar dari perkiraan sebesar 4,6 juta barel, menurut data yang dikeluarkan oleh Badan Informasi Energi AS pada Rabu lalu.Data persediaan mingguanbullishyang dikeluarkan oleh American Petroleum Institute (API) pada Selasa 18 April malam gagal meningkatkan sentimen pasar.Bullishdi pasar minyak menghadapi tantangan besar karena katalisbullish berdampak pada sentimen, kata catatan penelitian oleh PVM Oil Associates pada Rabu lalu.