The price of a barrel of oil jumped globally by more than 3%, at the end of today’s trading, Tuesday, June 13 (2023), after the recent decline to compensate for most of the losses it lost in yesterday’s trading, due to the search for deals, but the rise is still limited, with the movements of investors. Cautious, who are waiting to know the new features of monetary policy globally.
Investors and dealers in global economic markets, including oil markets, are awaiting major policy decisions by the US Federal Reserve and other central banks around the world, according to a report published by Reuters, which was seen by the specialized energy platform.
And US data released today showed that the inflation rate in the United States slowed to the lowest level in two years at 4%, during last May.
The global price of a barrel of oil fell yesterday, Monday, June 12, as the price of the two benchmark crudes declined; Brent crude and WTI, by about $3 a barrel, at a time when analysts highlighted the increase in global supplies.
The global price of a barrel of oil today
At the end of the session, Brent crude futures contracts – for August 2023 delivery – rose by about 3.4%, or by $2.45, to record $74.29 a barrel.
At the same time, US West Texas Intermediate crude futures – for July 2023 delivery – rose by about 3.4%, or $ 2.30, to record $ 69.42 a barrel, according to figures seen by the specialized energy platform.
The decline of the two benchmarks, yesterday, by about $ 3, came against the backdrop of fears of rising global supplies, as well as concerns about demand growth before the US Federal Reserve’s monetary policy meeting, which begins today and lasts for two days.
OPEC report
The monthly report issued by OPEC today showed that the production of member states decreased by 464 thousand barrels per day during the past month, bringing the total to 28.065 million barrels per day, led by Saudi Arabia, the UAE and Kuwait.
OPEC kept its forecast for global oil demand growth in 2023 unchanged at 2.35 million barrels per day, and estimates of supply growth from outside the organization stood at 1.43 million barrels per day.
Oil price analysis
The chief economist at Nomura Securities Corporation, Tatsufumi Okushi, said that the global price of a barrel of oil began to recover, with some investors looking for deals after the heavy selling the previous day, while others retreated from their positions with speculation that Saudi Arabia may add more. of production cuts.
He added that the price of a barrel of oil globally may witness a further decline, due to the faltering economic recovery in China, expecting WTI to trade in the range of $62.50 to $75 a barrel during the summer, but basically it will be less than $70 a barrel.
He explained that the oil market is currently awaiting demand forecasts from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency, which is scheduled to be announced later today, Tuesday, according to what was seen by the specialized energy platform.
Most of the participants in the oil market expect the US Federal Reserve to leave interest rates unchanged at its meeting, as raising interest rates strengthened the US currency, making dollar-denominated commodities more expensive for holders of other currencies, which left a clear impact on prices.
Meanwhile, the European Central Bank is expected to raise interest rates by another quarter of a percentage point, on Thursday, June 15, to tame inflation, while experts expect the Bank of Japan, which will announce its plan on Friday, to maintain its loose policy.
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