2023-11-13 16:33:04
oil
Oil prices rose, Monday, following OPEC issued a report that dispelled market concerns regarding weak demand in the United States and China, which were exacerbated by conflicting signals from the US Federal Reserve.
Price movements
By 14:45 GMT, Brent crude futures for January rose by 73 cents to $82.16 per barrel following falling by a dollar during early trading.
US West Texas Intermediate crude futures for December also rose by 70 cents to $77.87 per barrel.
Although some crude oil losses were compensated on Friday following Iraq expressed its support for the production cuts implemented by the OPEC+ group, it fell by nearly four percent during the week, recording losses for the third week in a row for the first time since May.
OPEC said in a monthly report that the fundamentals of the oil market remain strong, and blamed speculators for the decline in prices, while it slightly raised its expectations for growth in global oil demand in 2023 and stuck to its relatively high expectations for 2024.
“OPEC’s monthly oil market report appears to dispel demand concerns as it points to amplified negative sentiment on Chinese demand while raising demand growth forecasts for this year and leaving them unchanged for next year,” Craig Erlam, chief market analyst at OANDA, said in a note.
Investors were concerned following the US Energy Information Administration said last week that crude production in the United States this year would increase slightly less than expected, while demand would decline.
Tony Sycamore, a market analyst at IG, spoke regarding statements issued by US Federal Reserve officials indicating the possibility of monetary tightening, saying that it is not expected that “the crude oil market will welcome this, given the return of concerns related to growth following the latest data from China and the United States.”
Weak economic data released last week from China, the world’s largest importer of crude oil, raised fears of faltering demand.
Chinese refiners requested smaller supplies for December from Saudi Arabia, the world’s largest exporter.
Saudi Arabia and Russia, two major oil exporters, confirmed last week that they will continue voluntary oil production cuts until the end of the year, as concerns related to demand and economic growth continue to cast a shadow on crude markets.
The OPEC+ group, which includes OPEC and other allies, including Russia, meets on November 26.
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