© Archyde.com. An oil field in Texas in a photo from Archyde.com archive.
SINGAPORE (Archyde.com) – It fell on Monday, following rising 2 percent in the previous session, as investors ignored the impact of Russia’s decision to cut production and instead focused on short-term demand concerns arising from TADAWUL: refinery maintenance in Asia and the United States.
Prices rose on Friday following Russia, the world’s third-largest oil producer, said it would cut crude production in March by 500,000 barrels per day, or regarding 5 percent of output, in response to Western restrictions on its exports imposed due to its war in Ukraine.
Crude futures were down 69 cents, or 0.8%, at 85.70 a barrel by 0153 GMT, following rising 2.2% on Friday. The price of US West Texas Intermediate crude was $79.04 a barrel, down 68 cents, or 0.9 percent, following rising 2.1 percent in the previous session.
“The weakness we’re seeing in pricing in early morning trading today likely reflects the market coming to the realization that these discounts are already largely priced in,” ING analyst Warren Patterson said in a note.
The two benchmarks rose more than 8% last week, supported by optimism regarding the recovery of demand in China, the largest importer of crude in the year and the second largest oil consumer, following the lifting of restrictions related to combating Covid in December.
In October, the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, a group known as OPEC+, agreed to cut production by 2 million barrels per day, or regarding 2 percent of global demand.
OPEC officials told Archyde.com that oil prices may resume their rise to $ 100 a barrel later in the year due to the recovery of Chinese demand and a limited increase in supply due to lack of investment.
(Prepared by Hassan Ammar for the Arabic Bulletin)