New York oil prices rebounded slightly ahead of the Organization of Petroleum Exporting Countries Plus (OPEC+) meeting.
On a weekly basis, oil prices fell.
While attention was focused on OPEC+’s discussion of production cuts, China’s COVID-19-related city blockades still limited the rise in oil prices along with concerns regarding an economic slowdown.
On the 2nd (local time) on the New York Mercantile Exchange, the price of West Texas Intermediate (WTI) for October contract finished trading at $86.87 per barrel, up 0.26 dollars (0.3%) from the battlefield.
Crude oil fell 6.65% this week.
Brent crude for November was trading at $93.02 a barrel, up $0.66 (0.7%) from the previous week, but Brent crude fell 6.1% this week.
Concerns have grown that oil demand might be sluggish than supply due to OPEC+’s easing of production cuts and China’s coronavirus-related city lockdown.
The prospect of an economic downturn due to austerity measures by the US Federal Reserve (Fed) also weighed on oil prices.
Market participants are paying attention to the OPEC+ meeting, which will be held when the US market is closed on May 5 for the Labor Day holiday.
It remains to be seen whether the oil exporters will actually discuss production cuts in response to falling prices and declining demand next week.
“It’s not too far off for OPEC to agree to a cut, but it will stress that Saudi Arabia, the largest oil producer, needs to cut off current prices and tight supply fundamentals,” said Daniel Heinz, commodities analyst at Antz.
“Saudi will try to reflect the market as well as possible, which will expose additional supply-side issues,” he said.
Baden Moore, commodities analyst at the National Bank of Australia, said: “With Brent prices falling towards $90 a barrel, it is likely that OPEC+ will react to supply at its next week or October meeting. Given the size of supply and the continuing energy crisis in Europe, OPEC+ production cuts will have a significant impact on oil prices.”
Oil prices showed support on the day, but the range of gains during the day was reduced.
Concerns regarding a decrease in demand due to the city lockdown caused by the re-spread of the novel coronavirus infection (COVID-19) in China persisted.
The number of rigs operating this week fell five to 760, according to oil rig Baker Hughes.
Meanwhile, Russian energy giant Gazprom said on Tuesday that it had discovered a mechanical defect during pipeline maintenance and that “until it is fixed, Nord Stream gas transport will be completely stopped.”
Gazprom has not announced when the natural gas pipeline will be closed.
/yunhap news
