From The Rio Times · Diego Fernández · · 1m 50s
Oil Fund Slips 0.7% as YPF Falls 3.3%
Oil fund drops 0.7% as YPF falls 3.3% amid Gulf attacks and G7 emergency stocks.
In brief
Oil fund drops 0.7% as YPF falls 3.3% amid Gulf attacks and G7 emergency stocks. Oil prices dipped 0.7% as YPF fell 3.3% after reported Houthi attacks on Saudi airports and G7 emergency oil releases. Originally reported by The Rio Times.
Oil prices dip
Brent crude traded near US$101 a barrel and US crude (WTI) near US$89, 90 on Wednesday 7 October after reported Houthi attacks on Saudi airports.
US oil fund falls
The oil fund USO fell 0.69% to US$143.91 after trading as high as US$147.07.
EIA report
US commercial crude stocks fell by 3.19 million barrels last week to 424.1 million, against a forecast build of 1.9 million.
G7 emergency stocks
The G7 agreed to release up to 100 million barrels of emergency stocks, coordinated by the International Energy Agency.
Latin American shares
Petrobras rose 0.80% to US$23.99, while Ecopetrol fell 1.95% and YPF fell 3.28%.
Saudi attacks
Saudi authorities said airports in Jazan and Najran were targeted in attacks on Monday evening, injuring three people.
Pipeline recovery
The Saudi energy minister said pipeline flows recovered to 5.8 million barrels a day.
Market reaction
Wall Street fell and the dollar rose, which usually weighs on dollar-priced commodities.
Latin American impact
High oil prices help Latin American exporters, while inflation worries grow in the United States.
Prediction markets
Polymarket gives 90.5% to WTI touching US$90 in October and 53.0% to US$95 (US$1.1 million traded).
What moves next
The next move depends on how the market absorbs the emergency barrels and whether Saudi supply stays safe.
Brent price impact
For Latin American producers, a Brent price above US$90 keeps deepwater and shale projects attractive.
What happens next
The G7 release details and Saudi security will determine oil prices for Latin American producers.
The short version
Oil prices dipped 0.7% as YPF fell 3.3% after reported Houthi attacks on Saudi airports and G7 emergency oil releases.
