The growing fears of a possible recession in Europe, the United States and China reversed the rise in crude oil prices, which had been seen since the start of the war in Ukraine, returning them to US$90 per barrel on expectations that there would be a drop in global demand. In this context, large producers have only agreed to make moderate increases in their productiondespite the vacuum in the offer that Russia has left after the economic sanctions for its invasion of Ukrainian territory, which prevent access to crude oil for the West and allies.
Estimates point to another drop in US oil inventories. Stockpiles fell by more than 5 million barrels last week, compared with a drop of just 450,000 barrels expected by analysts.
Crude soared earlier in the day due to statements made by Saudi Arabia saying that an imminent cut in production was possible by the Organization of the Petroleum Exporting Countries and its allies, the OPEC+.
The stated goal was to balance a market he described as “schizophrenic” and increasingly disconnected. But potential OPEC+ production cuts may not be imminent and they are likely to coincide with Iran’s return to the oil markets in the event that country reaches a nuclear deal with the West, nine OPEC sources told ‘Reuters’.
Oil has soared this year, nearing an all-time high of $147 in March, after the Russian invasion of Ukraine exacerbated supply concerns. Since then, fears about a global recession, rising inflation and weaker demand have weighed on prices.
Source: Ambito
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