The price of a barrel of oil fell globally by more than 1.5%, at the end of trading today, Friday, June 9 (2023), after a volatile session, to continue to decline for the second day in a row, which prompted it to record its second weekly loss, amid fears of an economic recession that might limit demand. And questioning the possibility of the United States and Iran concluding a nuclear agreement.
Oil markets face uncertainty; What drives prices into a state of volatility, between the decline in supplies after Saudi Arabia pledged to cut production by an additional million barrels per day next July, and the decline in global demand due to the global economic slowdown.
The global price of a barrel of oil had turned down more than 4% in the previous session, on the back of newspaper reports indicating that the United States and Iran were close to a deal that would help ease the sanctions imposed against Tehran.
The weekly report of Baker Hughes showed that the number of oil rigs in the United States rose during the past week, by one rig to 556 rigs.
The global price of a barrel of oil today
At the end of the session, the price of benchmark Brent crude futures – August 2023 delivery – fell by about 1.5%, to $74.79 a barrel.
Meanwhile, US West Texas Intermediate crude futures – for July 2023 delivery – fell 1.6%, to $70.17 a barrel, according to figures seen by the specialized energy platform.
And the global price of a barrel of oil ended its dealings, yesterday, Thursday, June 8, with a decrease of more than 1.5%, to return to the decline, after it rose in the Wednesday session.
During the week ending today, Brent and West Texas Intermediate crude recorded weekly losses of 1.8% and 2.2%, respectively.
Oil price analysis
“The global price of a barrel of oil is expected to remain trading near $70 for WTI in the near term,” said Satoru Yoshida, a commodities analyst at Rakuten Securities.
Both benchmarks fell nearly $1 on Thursday, rebounding from earlier losses of more than $3, after the United States and Iran denied a report that they were close to a nuclear deal.
Throughout the week, the price of a barrel of oil is heading globally to record losses of about 1%, after losing the same value during the past week.
The price of a barrel of oil rose globally, early in the week, after Saudi Arabia pledged, last Sunday, to significant production cuts, but pared gains after rising US fuel inventories and weak Chinese export data.
demand for oil
Yoshida said: Factors such as concerns about shrinking supply and increasing demand as the United States enters the driving season, which could lead to higher prices, are offset by fears of a slow recovery in Chinese demand for fuel.
For his part, said an analyst at OANDA, Edward Moya: “The price of a barrel of oil globally did not get any advantages from China, because its economic recovery disappointed.”
Moya added that while a Reuters poll of economists showed that the US Federal Reserve may skip raising interest rates at its scheduled meeting from 13 to 14 June; The absence of similar signals from other major central banks is putting pressure on the outlook for oil demand.
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