2023-12-06 06:00:19
Suvroo Sarkar, Head of the Energy Sector Team at DBS Bank, said: "The only positive news over the past two days is the statement by Saudi and Russian officials that OPEC+ cuts could be extended or increased depending on prevailing market conditions." During the first half of 2024.
Analysts say that concerns about the impact of the conflict between Israel and the Palestinian Hamas movement on supplies provide some support after previous price declines.
said Priyanka Sachdeva, chief market analyst at Philip Nova "Fears of a possible escalation in the conflict between Israel and Hamas resurfaced after the United States held Iran responsible for an attack on American ships".
But Leon Li, an analyst at CMC Markets in Shanghai, said "This may just be a short-term rebound due to technical reasons… At present, oil prices have entered a downtrend".
He continued" We have already seen an increase in inventories in the United States and oil prices are likely to fall below $70 per barrel".
Prices were also affected by concerns about the health of the economy in China, which is the second largest oil consumer in the world.
On Tuesday, Moody’s credit rating agency lowered its outlook on China’s rating to negative from stable, indicating… "Risks associated with structurally low economic growth continue to increase over the medium term and the continued contraction of the real estate sector".
Adding to the pressure was the rise in crude oil and fuel inventories in the United States in the week ending December 1, according to figures issued by the American Petroleum Institute on Tuesday.
The sources, who requested that their identities not be published, reported that crude stocks increased by 594 thousand barrels. Gasoline stocks rose by 2.8 million barrels, while distillate stocks increased by about 1.9 million barrels.
US government data on inventories is scheduled to be released on Wednesday.
“>
Price action
By 0438 GMT, Brent crude futures rose one cent to $77.21 per barrel. US West Texas Intermediate crude futures fell four cents to $72.28 a barrel.
Both benchmarks closed at the lowest level since July 6 in the previous session, and US crude fell for four consecutive days.
The OPEC+ group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, agreed late last week on voluntary production cuts of about 2.2 million barrels per day for the first quarter of 2024. These cuts include an extension of the Saudi and Russian voluntary reduction of 1.3 million barrels per day.
Suvroo Sarkar, head of the energy sector team at DBS Bank, said, “The only positive news over the past two days is the statement by Saudi and Russian officials that OPEC+ cuts could be extended or increased according to prevailing market conditions” during the first half of 2024.
Analysts say that concerns about the impact of the conflict between Israel and the Palestinian Hamas movement on supplies provide some support after previous price declines.
“Fears about a possible escalation in the conflict between Israel and Hamas have resurfaced after the United States held Iran responsible for an attack on American ships,” said Priyanka Sachdeva, chief market analyst at Philip Nova.
But Leon Li, an analyst at CMC Markets in Shanghai, said: “This may only be a short-term recovery due to technical reasons… At present, oil prices have entered a downward trend.”
He continued, “We have already seen an increase in inventories in the United States, and oil prices are likely to fall below the level of $70 per barrel.”
Prices were also affected by concerns about the health of the economy in China, which is the second largest oil consumer in the world.
On Tuesday, Moody’s credit rating agency lowered its outlook on China’s rating to negative from stable, noting “increasing risks associated with structurally and persistently low economic growth in the medium term and the continuing contraction of the real estate sector.”
Adding to the pressure was the rise in crude oil and fuel inventories in the United States in the week ending December 1, according to figures issued by the American Petroleum Institute on Tuesday.
The sources, who requested that their identities not be published, reported that crude stocks increased by 594 thousand barrels. Gasoline stocks rose by 2.8 million barrels, while distillate stocks increased by about 1.9 million barrels.
US government data on inventories is scheduled to be released on Wednesday.
1701846317
#Oil #prices #mixed #concerns #outlook #Chinese #demand