Oil advances amid expectations of sanctions against Russia

Oil prices rose nearly 2 percent yesterday to a four-month high on expectations that expanded U.S. sanctions on Russia will force buyers in India and China to look for other suppliers.

Brent futures gained 1.57 percent to $81.01 a barrel. The United States West Texas Intermediate (WTI) rose 2.94 percent, to $78.82 a barrel. Meanwhile, the dollar, according to its index, which measures its behavior against a basket of six international currencies, appreciated 0.45 percent, to 109,490 points.

In addition, the rise in oil faced the bullish streak of the dollar, a currency that monopolizes the raw materials market. The employment data, the smaller drops in interest rates and the cost of credit in the United States gave an additional boost to the dollar.

The weight, pressed

The rise in oil prices, as well as increases in interest rates on US debt and the dollar, kept the exchange rate under pressure.

In the midst of high volatility, the Mexican currency closed at 20.7235 pesos per dollar spot, and had four downward sessions, in which it accumulated a loss of 42.83 cents against the US currency.

According to the Bank of Mexico (BdeM), the exchange rate operated yesterday between a maximum of 20.8700 units and a minimum of 20.6820.

Debt investors are awaiting U.S. inflation data to be released this Wednesday, and expect it to rise. The lower interest rate declines in the United States expected for 2025 and the resurgence of inflationary tensions raise the interest required on the 10-year US bond to 4.78 percent.

The unexpected acceleration of job creation in the United States could delay the expected rate cut, and the decline in the unemployment rate further dampened the Federal Reserve’s rate reduction expectations. Additionally, rising oil prices added an extra hurdle to rate cuts.