2023-06-26 21:03:11
Oil prices rose due to the weakness of the US dollar, which made the commodity more attractive to importing countries, in addition to the markets ignoring, until now, the dramatic and short-lived rebellion inside Russia.
Calm has returned to Moscow in the aftermath of the end of the uprising led by Yevgeny Prigozhin, the head of Wagner, with investors waiting in anticipation of whether this uprising is a harbinger of possible further unrest in Russia.
Although Russia is one of the oil producing countries that are members of the “OPEC +” alliance, oil prices were not affected by this rebellion.
At the Kuala Lumpur conference, Daniel Yergin, vice president of S&P Global, said: “The reaction was negligible and there was not much disruption. What is now dominating the oil markets is economics, not politics.”
The Goldman Sachs Group also announced that the impact of the rebellion on oil prices may be limited because the fundamentals of the spot market have not changed. However, RBC Capital Markets said the risks of any further civil unrest “must be kept in mind when analyzing the oil markets”.
Oil prices have fallen about 13% since the beginning of the year, due in part to strong Russian exports, but also reflecting the impact of monetary tightening in the United States and slowing economic recovery in China.
Chinese competition for Middle East oil confuses the market
China’s economy is still showing signs of losing momentum, and recent figures have shown that spending has slowed on everything from holiday travel, to cars and homes.
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