Crude oil prices rose, during trading today, Monday, May 8 (2023), for the second session in a row, in an attempt to reduce the losses they suffered during the past week.
This comes after easing fears of a recession in the US, which led to prices falling for 3 consecutive weeks for the first time since November.
Crude oil prices today
By 6:46 a.m. GMT (9:46 a.m. Mecca), Brent crude futures for July 2023 delivery rose 0.73%, to $75.85 a barrel.
US West Texas Intermediate crude futures, for June 2023 delivery, also increased by 0.77%, to record $71.89 a barrel, according to data seen by the specialized energy platform.
Crude oil prices ended their trading, on Friday, May 5, with an increase of more than 4%, but it recorded weekly losses for the third time in a row.
Over the past week, benchmark Brent crude fell by 6.3%, and West Texas Intermediate crude fell by 7.1%.
Oil price analysis
CMC Markets analyst, Tina Ting, said: “Oil’s recovery comes after the return of energy stocks on Wall Street, last Friday, after the United States announced strong jobs data, which eased fears about the imminent economic recession that led to selling in early last week.”
Concerns that the US banking crisis would slow the economy and undermine fuel demand in the world’s largest oil consumer led to a 6.3% drop in the Brent index last week, while WTI fell 7.1%.
Nevertheless, the US jobs report for April, the decline in the dollar, and expectations of supply cuts at the next meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, in the alliance known as OPEC +, in June helped the benchmark indicators recover by about 4% on the day. Friday.
“Crude oil prices are trying to stabilize as energy traders wait to see if OPEC+ should signal they are willing to cut production further,” said OANDA analyst Edward Moya.
demand for oil
Goldman Sachs analysts said, in a note, on Saturday that concerns about demand in the near term due to pressure in the US banking system, industrial slowdown and rising global supplies due to limited compliance with OPEC + cuts are “exaggerated”.
The investment bank maintained its forecast for the price of Brent crude at $95 a barrel by December and $100 by next April.
ANZ Research analysts also said they believe the market’s focus will now shift from economic concerns to tightening oil supply.
The US is expected to release April consumer price inflation figures on Wednesday; This may provide more clues to interest rate movements amid widespread expectations that the US Federal Reserve will pause interest rate hikes.
This week, traders will be watching carefully Chinese economic indicators, including trade, inflation, lending, and money supply figures for April; Market participants continue to gauge the economic recovery in the world’s second largest oil consumer.
“Crude oil prices may continue to bear tailwinds and a wave of volatility in the coming period,” said CMC Markets analyst, Tina Ting. Reuters.
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