The global price of a barrel of oil returned to decline, at the end of trading today, Tuesday, June 6 (2023), for the first time in 4 consecutive sessions, giving up the gains it achieved during recent trading, at a time when concerns about the global economic recession increased, and the possibility of a decline in supplies. In the oil market, after Saudi Arabia announced the largest voluntary cut in many years.
And Saudi Arabia’s announcement sparked the extension of the voluntary cut in production by 500,000 barrels per day until the end of next year (2024), with the application of an additional cut during next July (2023) by one million barrels per day, for a period of one month, renewable; A lot of concerns among global economies, according to what was published by Reuters.
And the global price of a barrel of oil witnessed a rise during trading yesterday, Monday, June 5, as prices rose to near the barrier of $ 77 a barrel, after it had fallen to its lowest level during the past week, and fell below $ 72, according to the figures that I looked at. It has a specialized power platform.
The global price of a barrel of oil today
At the end of the session, Brent crude futures contracts – August 2023 delivery – fell by 0.5%, to $ 76.29 a barrel.
Meanwhile, US West Texas Intermediate crude futures – for July 2023 delivery – fell 0.6%, to $71.74 a barrel, according to figures seen by the specialized energy platform.
Brent benchmark crude gained $2.6 during trading on Monday, while US West Texas Intermediate crude gained about $3.3, following the announcement by Saudi Arabia, the world’s largest oil exporter, that its production will drop to 9 million barrels per day in July. next July.
It is noteworthy that the OPEC + alliance had met on Sunday, June 4, and decided to maintain the current policy of reducing production, while adjusting its expiry date from the end of 2023 to the end of 2024, as Saudi Arabia and Russia will work to reduce each other’s production by 500%. thousand barrels per day.
Oil price analysis
The US Energy Information Administration raised its forecasts for the growth of global oil demand and non-OPEC supply during the current year, and strengthened its estimates of oil prices.
For his part, Leon Lee, an analyst at CMC Markets, said that the price of a barrel of oil globally is still in a bear market, and it can be seen that some advanced economies have begun to collapse as they enter a stage of economic recession, such as what is happening now in Germany.
At the same time, market participants are waiting to see if the US Federal Reserve will raise or suspend interest rates in June, and what the Chinese trade data for May, which will be announced tomorrow, Wednesday, by the world’s second largest oil consumer, will indicate. .
A rate hike by the Fed could curb energy demand, although many analysts say consumption will be strong, as markets now hold the Fed’s chances of pausing interest rate hikes this month are at 77%, according to the tool. CME Feed Watch”.
Rystad Energy’s research director, Claudio Gallimberti, said that demand is still expected to be a positive driver for the market after the release of recent economic data, with neither the US nor Europe entering a recession.
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