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Oil fell and ended its upward streak of three consecutive days

Oil fell and ended its upward streak of three consecutive days

Oil prices fell this Tuesday, June 6, after a sharp rise in the previous sessionSince the concern about global economic growth weighed more than the Saudi Arabia pledge to deepen its production cuts.

The Brent crude futures they lost 42 centsor 0.6%, to $76.29 per barrel. US crude West Texas Intermediate fell 41 centsor 0.6%, to $71.74 the barrel.

Brent rose to $2.60 a barrel last monday and WTI up to US$3.30 after what Saudi Arabiathe world’s largest exporter, said over the weekend that its production would be reduced by 1 million barrels per day (bpd) to 9 million bpd in July.

However the weakening demandhe increased supply from non-OPEC countriesthe possible recessions in the United States and Europe and the slower growth in China make Saudi production cut unlikely to underpin “sustainable price rise” to $80-90, according to a note released Tuesday by Citi analysts.

The US service sector barely grew in May due to the slowdown in new ordersand market participants are waiting to hear if the United States Federal Reserve will raise or maintain interest rates in June. Higher interest rates could curb energy demand.

The Energy Information Management from United States raised its forecast for growth in world oil demand on Tuesday by 2023 at 30,000 barrels per day, up to 1.59 million bpd.

During this day, The World Bank raised its global growth forecast for 2023as the United States and other major economies have proven more resilient than expected, but he said higher interest rates would cause a bigger drag than expected next year.

Source: Ambito

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