#Brent crude
Oil benchmarks fell nearly $3 on Tuesday, with Brent hitting its lowest since December 2021 and WTI falling to a May 2023 trough
Despite Friday gains, oil was down for the week
That has stoked worries among traders about a slump in demand from China, where refineries sharply cut crude processing rates last month on tepid fuel demand
Oil majors have complained that the terms of Iraq’s traditional oil service contracts meant they could not benefit from rising oil prices and lost out when production costs rose
Both Brent and WTI were set to gain more than 3 per cent on a weekly basis
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said OPEC+ could pause or reverse the production hikes if it decided the market is not strong enough
OPEC+ is currently cutting output by about 5.7 per cent of global demand, in a series of steps agreed since late 2022
OPEC’s report points to an oil supply deficit in coming months
July exports are expected to be down from about 39 million barrels in June, possibly the lowest levels for the year, say reports
OPEC+ is currently cutting production by about 5.7 per cent of global demand to bolster the market
The OPEC+ supply cuts since late 2022 have been against a backdrop of rising output from the US and other non-member producers
Capacity discussions can be complicated by different oil price preferences among OPEC+ members
While oil prices rose over 1 per cent on Monday in muted trade, gold hit a record high of $2,449.89 last week, but has shed more than $100 since then
Crude exports from the world’s largest oil exporter increased 1.5 per cent to 6.413 million barrels per day in March
Despite the volatility in the region, oil prices moved only slightly
Equities, which tend to move in tandem with oil prices, rose on the rate cut hopes, with the Dow reaching an all-time high of 40,000 for the first time
Goldman still expects Brent crude futures to remain in a range of $75 to $90 a barrel in most scenarios
Saudi Arabia raised the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June
The move by Reliance comes as India, the world’s third-biggest oil importer and consumer, is looking to diversify its oil supplies
Oil inventories and prices close to the long-term average imply ministers are likely to decide to keep output unchanged, based on their behaviour in the past
The weakening signs in physical markets have been driven by peak refinery maintenance, extra supply from the US, and a recovery from outages at some producers
The geopolitical risk premium in oil prices had been unwinding this week on the perception that the US could ensure tensions were managed
Analysts said prolonged tensions through the second quarter this year have largely priced oil at $85-$90 per barrel
Investors will look to economic data and monetary policy for potential clues on the outlook for oil demand
Europe’s firm demand, softness in US supply growth coupled with a possible extension of OPEC+ cuts through 2024 outweigh downside risk from persistent softness in China’s demand
This year, international oil prices have been strong, with Brent holding above $80 a barrel
Morgan Stanley expects oil demand to grow at 1.5 million bpd this year which is slightly above the historical trend growth
Near-term growth in global oil and liquids production will be driven primarily by the US, Guyana, Canada and Brazil, offsetting voluntary production cuts by OPEC+
The level of spare capacity – or the perception of how much is available – can influence world oil prices.