The price of oil has been touching it’s highest point in seven weeks. After that, finally it slumped by 2 percent in the market due to a statement made by Jerome Powell as the Federal Reserve Leader. 

However, this weakening price was not happened too long because it succeed to recover again at a trading acting yesterday. Many participants will take it seriously as a consideration before taking an action. 

The Brent oil was around the range of $ 113.19 per barrel when this news was written. It means that commodity was 4.3 % stronger followed by the other sectors. 

An example is WTI which moved around the level of $ 114.14 per barrel. These changes are a good news for some market participants to support their further actions. 

Powell Warned about the Economic Challenge Ahead

Powell gave his new statement said yesterday where he warned about the economic difficulties. It may appears as an impact of the central bank effort to decrease the inflation level. 

However, he said again that The Feed will continue it’s struggle against the jump of inflation. To do so, they might do a tighter USA monetary policy until the situation is stable enough. 

Due to that speech , some economists then gave their opinion and analysis. One of them is Phil Flynn who stated that opinions made by Powell gave a sign that economic prospect will be underpressured.

It is especially because of The Fed aggressive policy which is indirectly slow down the oil purchase enthusiasm. This statement made based on a standard and facts which has happened before. 

Crude Oil Prices were Pushed by Another Catalyst

The factor above is not the only catalyst you may see recently. Another thing which had been pushing the price of oil is a plan made by the United States of America due to a situation.

Sanctions to Venezuela May be reduced. It became a highlight amidst the society lately and then attract government to give their opinion and further actions about that.

Based on a release, US government said that they will give a right to a well – known United States oil company named Chevron Corp. They want that company to make a negotiation with Venezuelan government. 

Mr. Nicholas Naturopathic as a president is the one who direct the government. It is hoped that the negotiation will be held as soon as possible and crest the best result for all. 

The Final Decision has been not made yet

The final decision from America had been not made yet, especially about their desire to fix an operational license of Chevron in Venezuela. This progress is a great new for several parties. 

It was a great situation awaited by so many prospects of group there. Before, several uncertainties occured there because of a conflict of Ukraine and also Russia.

Talking about the unstable things happened at the east of Europe, the sanctions given make the oils productions in Russia decreased by 9 percent. It was for this April 2022 period. 

The Crude Oils Prices may not Fall

For your information, it is true that the European Union stopped to buy oils from Russia gradually. The distributions of this commodity (non – Russia) to a harbors in Poland is the prove. 

The Data showed that the numbers are the highest one in 7 years. At the end, everything is about oil offers. There is a side which is believed by analysts about these conditions.

They quite sure that it will be hard to see the crude oil prices slumped Drastically. It is except OPEC and it’s allies increase their productions quickly where this decision is quite challenging to do.