Thursday, July 18, 2024

Oil rises after OPEC report tackles fears of slowing demand

Date:

Price movements

By 14:45 GMT, Brent crude for January delivery was up 73 cents at $82.16 a barrel, down a dollar in early trade.

U.S. West Texas Intermediate crude for December was up 70 cents at $77.87 a barrel.

Although some crude losses were offset on Friday after Iraq expressed its support for production cuts implemented by the OPEC+ group, it fell nearly four percent on the week, posting its third straight week of losses for the first time since May.

OPEC said in a monthly report that oil market fundamentals remained strong and slightly raised expectations for global oil demand growth in 2023, sticking with higher expectations for 2024.

“OPEC’s monthly oil market report, while raising demand growth forecasts for this year, amplified negative sentiment on Chinese demand and left them unchanged for next year. Note.

Investors were worried after the US Energy Information Administration said last week that US crude oil production will rise slightly less than expected this year, while demand will ease.

Tony Sycamore, a market analyst at IG, spoke about the reports released by the US Federal Reserve officials, hinting that monetary tightening is possible, adding, “The crude oil market is not expected to welcome this, as growth concerns resurface later. The latest data from China and the US.”

Weak economic data released last week from China, the world’s largest crude oil importer, raised fears of a slowdown in demand.

Chinese refiners requested smaller supplies for December from Saudi Arabia, the world’s biggest exporter.

Saudi Arabia and Russia, the two biggest oil exporters, confirmed last week that they would voluntarily continue oil production cuts until the end of the year, as worries about demand and economic growth continue to cast a shadow over crude markets.

See also  Agreement with General Motors ends strike by auto workers in US Economy

The OPEC+ group, which includes OPEC and other allies including Russia, meets on November 26.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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