2023-05-30 09:16:50
AA / Ankara / Sibel Morrow
Oil prices fell in early morning trading on Tuesday on worries about US demand hit by the public debt ceiling crisis, interest rate policy ambiguity interest from the US Federal Reserve (Fed) and fears about a possible recession.
International benchmark Brent oil traded at $76.58 a barrel as of 9:52 a.m. local time (0652 GMT), down 0.67% from the closing price on Friday. last, which was $77.10 a barrel.
The West Texas Intermediate (WTI) benchmark US barrel price traded at $72.37 a barrel, down 0.41% from the previous closing price of 72. $67 a barrel.
Following discussions last week between US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy regarding the public debt ceiling crisis, the two men announced on Sunday that the worst-case scenario of debt default will be avoided, thereby easing the pressure on the markets.
Markets are, however, awaiting the Fed’s next interest rate decision, amid lingering fears of a possible recession that continues to weigh on crude prices.
Analysts predict that US inflation will not slow to the desired pace amid strong economic activity, a situation that raises the possibility of yet another interest rate hike.
On the supply side, brokers await decisions from the main producers of the OPEC + group, especially since the two main members of the organization had issued divergent signals on the issue.
Predictions of further oil production cuts were bolstered by Saudi Energy Minister Abdulaziz bin Salman’s warnings to brokers last week.
While Russian Deputy Prime Minister Alexander Novak, for his part, hinted that the Alliance’s current production strategy would continue, saying last Thursday that energy prices were approaching “economically justified”.
Earlier in April, some OPEC+ countries decided to cut oil production by 1.6 million barrels per day (bpd), which comes on top of existing cuts of 2 million. of bpd. Russia quickly followed suit, announcing it would extend current production cuts of 700,000 bpd until the end of the year.
* Translated from English by Mounir Bennour.
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