- Oil trades lower following two consecutive weeks of losses
- July ’23 WTI lost $2.17 this morning to trade around $68/Bbl
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Despite the market being expected to tighten in 2H2023 due to increasing demand in China and India, economic woes in U.S. and Europe weigh on prices
- Weak Chinese export data, a lower-than-forecasted 0.2% CPI growth, and a 4.6% drop in May's PPI have intensified uncertainties about crude demand
- The U.S. Fed is expected to skip an interest rate hike after a year of increases on Wednesday, a move likely to buoy energy demand
- Saudi Oil Minister Highlights OPEC+'s Proactive Approach Amid Market Instabilities (Bloomberg)
- Saudi and OPEC+ tackle market uncertainties and short sellers with strategies including Saudi's July production cut of 1 MMBbl/d, said Prince Salman on Sunday
- The minister emphasized OPEC+'s proactive, preemptive, and precautionary approach, noting that the countries investing in oil production, like the UAE, Algeria, and Iraq, will receive higher output quotas
- Oversupply Concerns Spark Goldman's Crude Price Forecast Revision (Bloomberg)
- Goldman cuts oil price projections, increases 2024 supply outlook for Russia, Iran, and Venezuela by 0.8 MMBbl/d
- December forecasts for Brent and WTI crude are now $86/Bbl and $81/Bbl, down from $95/Bbl and $89/Bbl
- Jeff Currie, Goldman's commodities research head, referring to their third price revision in six months, said, "We have never been this wrong for this long without seeing evidence to change our views"