The prices of a barrel of crude oil rise this Tuesday, June 13, in the international markets of New York and London, after the United States consumer price index, which in May registered a modest rise, which cemented the bets that the Federal Reserve put a stop to interest rate hikes at the end of their meeting on Wednesday.
Brent crude futures rise to $2.95, or 3.9%, to $71.84 a barrel, after collapsing the previous day and touching the lows of December 2021. Meanwhile, the West Texas Intermediate in the United States (WTI) advances u$s2.41 (+3.6%) to u$s69.53.
In year-on-year terms, headline inflation rose 4.0%, below estimates, reflecting decreases in the cost of energy products and services, including gasoline and electricity.
“Today’s drop in the inflation rate is likely to be welcomed by investors, but it remains stubbornly above the Fed’s 2% target”said Richard Flynnmanaging director of Charles SchwabUK.
“The good news is that the ‘stickiness’ of inflation is now limited to a smaller number of categories compared to the beginning of the year,” he added.
OPEC maintained its growth forecast for 2023
OPEC maintained its growth forecast for world oil demand for 2023 for the fourth monthalthough the producer group warned that the world economy faces increasing uncertainty and slower growth in the second half of the year.
Global oil demand in 2023 will increase by 2.35 million barrels per day (bpd), or 2.4%, the company said. Organization of Petroleum Exporting Countries (OPEC) in its monthly report. This figure is virtually unchanged from the 2.33 million bpd forecast last month.
“Uncertainties about economic growth in the second half of 2023 are increasing, in a context of high inflation, already high interest rates and tense labor markets”said OPEC in its report.
“In addition, it is not yet clear how and when the geopolitical conflict in Eastern Europe will be resolved”he added in reference to Ukraine.
OPEC+, made up of OPEC, Russia and other allies, has been taking more steps to support the oil market in 2023.
On June 4, it announced its second package of production cuts since April. However, crude oil prices have remained under pressure due to concerns about slowing economic growth and demand.
The report showed that OPEC oil production fell in May, reflecting the impact of earlier cuts promised by OPEC+, as well as some unplanned disruptions.
OPEC said in the report that its May production fell by 464,000 bpd.to 28.06 million bpd, as voluntary cuts promised by Saudi Arabia and other members take effect.
Last year, Faced with weakening prices, OPEC+ agreed to a 2 million bpd cut to its production target from Novemberin its biggest reduction since the COVID-19 pandemic in 2020. On April 2, several OPEC+ members promised additional voluntary cuts.
Source: Ambito
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