Brent crude oil futures fell Today to around $73 per barrel, regaining gains from the previous session. However, the market remained under pressure as concerns about a recession, recent banking turmoil, and indications of a resilient Russian supply continued to weigh.
Additionally, investors were anticipating the US Federal Reserve’s policy decision this week, which is anticipate to result in a 25 basis point increase in interest rates. Due to weaker fundamentals, lower demand, and moderately higher non-OPEC supply,
While Goldman Sach has lowered its 12-month Brent oil price outlook from $100 to $94. The International Energy Agency (IEA) recently stated that China is anticipate to drive a 2 million barrel increase in daily global oil demand this year.
In the meantime, indications of strong demand from China, the largest crude importer, maintained a floor on prices.
Brent and WTI both dropped about $3 a barrel in the previous session before rising. After that, major central banks and UBS offered Credit Suisse a lifeline, promising to increase market liquidity and support the banking system.
After wrapping up its two-day meeting on Wednesday, the Federal Reserve will decide whether and how much to raise interest rates. This will have an impact.
Crude oil futures market estimate of the most likely size of the subsequent Fed move has decreased from 50 basis points to 25 basis points since the banking conflict began this month.
In the meantime, representatives from the G7 stated that the Group of Seven Nations was unlikely to proceed with the planned revision of a $60-per-barrel price cap on Russian oil. According to the officials, over the weekend, the European Commission informed the ambassadors of EU nations that the G7 did not have a pressing need for an immediate review.
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A meeting of OPEC+, which includes Russia and the world’s top oil exporting nations and allies, is scheduled for April 3. In October, the group agreed to reduce the daily oil production target by 2 million barrels until the end of 2023.
Due to a decrease in the price of WTI in comparison to Brent and lower oil demand from U.S. refineries, U.S. crude exports to Europe have reached a record 2.1 million barrels per day on average so far this month.