On Tuesday (May 2), international oil prices are expected to extend the decline of the previous trading day, as the Fed’s interest rate hike expectations weighed on the market, although China’s May Day holiday showed positive signs of consumption, slowing down the downward pace of oil prices. NYMEX crude oil fell below $73.93.
At 16:17 Beijing time, NYMEX crude oil futures fell 0.21% to $75.50 a barrel; ICE Brent crude futures fell 0.13% to $79.22 a barrel.
The Federal Reserve will hold a policy meeting on May 2-3, and is widely expected to continue raising interest rates by 25 basis points. Higher central bank rates could slow economic growth and weaken demand for energy, which in turn lowers oil prices.
Banking concerns have also weighed on oil in recent weeks. In this case, regulators took control of First Republic Bank (FRC.N) and sold its assets to JPMorgan Chase & Co (JPM.N). It was the third regional U.S. bank to fail in two months and the largest U.S. bank failure since the 2008 financial crisis.
Last weekend, despite the poor manufacturing data released in April in China, China Central Television reported that passenger travel on the first day of the May Day holiday surged by 151.8% compared with the same period last year, with 5,699 trips by air, road, water and rail on that day. million people.
ANZ Research said there were signs of a positive recovery in spending during the five-day Labor Day holiday in the world‘s largest oil importer, “according to China’s Ministry of Commerce, sales at major retail and catering companies rose 21% year-on-year, National rail traffic has reached a record 19.7 million passengers, and passenger traffic is also expected to increase by 20% compared with 2019.”
On the daily chart, NYMEX crude oil continues to be under pressure at $76.19 and is expected to drop below $73.93, which are the 38.2% Fibonacci retracement and 50% Fibonacci retracement of the upward range from $64.36 to $83.53 respectively stalls.