2023-06-30 20:43:36
Brent crude recorded the longest streak of quarterly losses in more than three decades, amid ample supply and continuing concerns regarding demand rates.
Oil faced concerns regarding a possible slowdown in the global economy as well as a slowdown in the economic recovery in China.
Increased exports from Russia and Iran maintained ample supply, and its impact outweighed the possibility of increased demand in the summer and the impact of production cuts by the Organization of the Petroleum Exporting Countries (OPEC).
Global benchmark crude prices settled below $75 a barrel on Friday, marking their fourth consecutive quarterly decline, while WTI recorded its first consecutive quarterly decline since 2019.
Performance expectations for the second half of the year are mixed, as some analysts expect a shortage of crude in the market, partly due to the end of seasonal maintenance. However, US Federal Reserve Chairman Jerome Powell and some of his peers announced the possibility of a new increase in interest rates, which might negatively affect the level of energy consumption.
HSBC lowers its forecast for Brent crude to $80 a barrel
Michael Tran and Helima Croft, analysts at the Royal Bank of Canada, wrote in a note: “We fear that market inactivity and a lack of risk appetite will be further complicated if supply in global markets for crude trading is not reduced directly. It may end up becoming This year is a lost year for oil markets, with risk remaining on the periphery.
On Friday, Russia’s Deputy Prime Minister Alexander Novak ordered officials to study applying quotas to the export of oil products, according to a government statement. And if Russia implements the quota system, this might lead to a decrease in the global oil supply.
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