Oil declines ahead of Jerome Powell speech

Oil prices are again showing a decline in anticipation of the speech of the head of the Federal Reserve System Jerome Powell in Congress, scheduled for tonight. 

Market participants hope to receive new signals regarding further changes in interest rates. Investors are concerned because the prospect of higher rates and tighter monetary policy could lead to a recession in the US economy and reduce fuel demand.

Most likely, today's speech by the head of the US Federal Reserve will be the last before the March meeting, which will be held on March 21-22. 

Against this background, Brent oil quotes fell on Tuesday to the level of $85.56 per barrel. North American WTI oil shows similar dynamics, falling to $79.85 per barrel. 

At the same time, there are a number of factors that can provide certain support to oil quotes in the future. We are talking about the statement of the CEO of the American Pioneer Natural Resources Co. Scott Sheffield said that the production of shale oil and gas in the Permian basin will reach a peak level in 5-6 years (against the background of depletion of the best fields for drilling and production). 

In addition, Saudi Aramco's increase in prices for European and Asian buyers for almost all grades of oil in April indicates expectations of demand growth in these regions.