May 22, 2020 | 5:28 pm
The Mexican Export Mix closed the session on Friday with a loss of 2.60% at $ 27.30 per barrel, however, on the weekly balance, it accumulated an advance of 10.35%.
International oil prices fell this Friday due to new diplomatic tensions between the United States and China.
Benchmark WTI crude for July delivery lost 2% to $ 33.25, while the North Sea benchmark, Brent, fell 2.6% to $ 35.13 a barrel, although in the week they achieved an advance of 12.6 and 8.1%, respectively .
The Chinese government has released a proposal for a law for the Chinese security authorities to exercise direct control over Hong Kong. Because this legislation aims to limit population freedoms in that region, tensions with the West are expected to rise as had already happened during 2019.
In addition, in the week the president of the United States, Donald Trump attacked China again via Twitter, blaming them for the pandemic and mentioning that the Chinese are desperate for Joe Biden to win the elections.
A better expectation for the oil market was strengthened during the week after the publication of the weekly report of the United States Energy Information Administration (EIA).
In its report, the EIA published that during the week ending May 15, US crude oil inventories showed a surprising contraction of 4.98 million barrels, while inventories at Cushing, Oklahoma, the delivery terminal for WTI futures contracts were reduced by 5.59 million barrels.
Another positive factor for the price of oil was the news that Russia’s oil production fell to about 8.75 million barrels per day in the first 11 days of May, approaching the target of 8.5 million barrels.
However, the oil market faces a difficult context, the coronavirus still affects flights, as well as road trips (…) There is still the possibility that another wave of infections will occur again globally, which could once more limit demand for oil
Gabriela Siller, director of economic analysis at Banco Base, said in a report.
So he expects the downward pressures for the price of oil to continue.