Brent Crude Oil Takes a Breather After Sharp Rally

Brent Crude Oil: futures steadied around $106 per barrel on Tuesday, taking a breather after rallying more than 5% in the previous session as a still tight global market countered fears that a looming recession would hurt energy demand.

President Joe Biden’s visit to Saudi Arabia failed to yield any pledge from Arab leaders to ramp up production, with Saudi ministers insisting that OPEC+ would base their policy decisions on market factors ahead of the group’s meeting on August 3.

A Bloomberg report quoted Iraqi Oil Minister Ihsan Abdul Jabbar as saying that crude will remain above $100 a barrel for the rest of the year and stay high for the next few years, requiring OPEC+ to manage supply and demand.

An easing dollar and the Federal Reserve’s pushback against speculations for a bigger 100 basis point rate hike also lifted market sentiment and supported buying interest