Report

rss

Iraq News

Kurdistan

Economy

World

All News

Oil prices edge down as investors weigh rising supplies, demand outlook

Category: Economy

Date: 2021-04-09T08:33:15+0000
Oil prices edge down as investors weigh rising supplies, demand outlook

Shafaq News/ Oil prices edged down on Friday as investors weighed rising supplies from major producers and the impact on fuel demand from the COVID-19 pandemic.

Brent crude futures for June edged down 12 cents, or 0.2%, to $63.08 a barrel by 0731 GMT, while U.S. West Texas Intermediate (WTI) crude for May was at $59.59 a barrel, down 1 cent.

Both contracts are on track to post a 2%-3% drop this week after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+ that includes Russia, agreed to gradually increase supplies by 2 million barrels per day between May and July.

Analysts expect global oil inventories to continue to fall; however, as fuel demand accelerates in the second half of this year as the global economic recovery gathers steam.

“A lot of destocking is going on so we are well into the rebalancing process,” Energy Aspects analyst Virendra Chauhan said.

Physical markets will still need to pick up, though, before prices and intermonth spreads can rally, he added.

Concerns are surfacing that renewed lockdowns in parts of the world to curb rising COVID-19 cases and problems with vaccinations could alter the oil demand picture.

Stephen Innes, chief global markets strategist at Axi, said oil prices are expected to trade in a range between $60 and $70 as investors weigh these factors.

This week, world powers and Iran held talks on reviving their 2015 nuclear deal, which may pave the way for the United States to lift sanctions on Iranian oil exports in the second half this year.

“If a fulsome framework can be crafted in the coming weeks, significant quantities of Iranian oil will likely hit the market in H2 2021,” RBC Capital analyst Helima Croft said in a note this week.

Source: Reuters.

related

Oil Jumps in Volatile Trade Amid CPC Pipeline Disruption

Date: 2022-03-23 14:41:20
Oil Jumps in Volatile Trade Amid CPC Pipeline Disruption

Oil down on stronger greenback, rising U.S. rig count

Date: 2021-09-20 06:06:13
Oil down on stronger greenback, rising U.S. rig count

Oil tumbles on global economic worries, strong dollar

Date: 2022-05-10 05:46:02
Oil tumbles on global economic worries, strong dollar

Oil prices rise following Ansar Allah's attack on Saudi Arabi

Date: 2021-03-26 07:32:17
Oil prices rise following Ansar Allah's attack on Saudi Arabi

Dana Gas rebounds to record annual profit in 2021 amid higher oil prices

Date: 2022-02-09 12:22:04
Dana Gas rebounds to record annual profit in 2021 amid higher oil prices

Oil prices drop as Trump cancels Aid talks

Date: 2020-10-07 06:09:40
Oil prices drop as Trump cancels Aid talks

Oil bounces around as tight supply offsets China, recession fears

Date: 2022-06-14 06:55:07
Oil bounces around as tight supply offsets China, recession fears

Oil rises on optimism of quick recovery in global demand

Date: 2021-06-22 06:00:14
Oil rises on optimism of quick recovery in global demand