CRUDE OIL : Strong US economic data and hawkish remarks from Federal Reserve officials, who hinted at another 50 basis point rate hike to bring down inflation, weighed on WTI crude oil prices.
Which fell below $78 per barrel on Friday and were on track to end the week about 2% lower. Additionally, data indicating a significant increase in US crude inventories and the US government’s plans to release an additional 26 million barrels of oil from strategic reserves put pressure on oil prices earlier this week.
The International Energy Agency (IEA) increased its forecast for oil demand growth in 2023 while maintaining a price floor, with China accounting for nearly half of the anticipated increase following the removal of severe Covid restrictions.
Additionally, the IEA stated that OPEC+’s restrained production could result in a supply deficit in the second half. Prince Abdulaziz bin Salman, the minister of energy in Saudi Arabia, recently stated that OPEC+ intends to maintain its current practice of reducing oil production by 2 million barrels per day until the end of 2023.
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