Oil Down as Demand Concerns Supercede Saudi Cuts
Oil posted a weekly decline as demand concerns continue to dominate market sentiment even after Saudi Arabia’s unilateral pledge to cut production.
West Texas Intermediate settled near $70 a barrel, closing out the week lower than where it last stood before Saudi Arabia’s surprise weekend announcement. The commodity clocked a 2% weekly decline even with the wild gyrations set off by dueling international headlines. Riyadh’s surprise decision to cut output by about 1 million barrels caused a short-lived rally that was whittled away by demand fears.
Oil briefly fell below $70, shedding almost 5% in less than an hour, on reports in Middle Eastern media — quickly disavowed by government officials — that the US and Iran were making progress on nuclear talks. While prices largely recovered, traders said the stampede reflected the market’s willingness to sell.
“We have been continuously selling for about six months to nine months,” said Jeff Currie, head of commodities research at Goldman Sachs Group Inc. said in a Bloomberg Television interview.
The US oil benchmark has fallen about 14% from a mid-April peak on signs that China’s recovery is stalling and the US will need to keep raising interest rates to rein in inflation. Also, Russia’s crude exports have been more resilient than anticipated, adding to supply.
Despite the weakness in oil’s flat price, there were a few flickers of bullish sentiment. Money managers bolstered their bullish bets on Brent crude to a six-week high in the week ending June 6th.
Prices:
- WTI for July delivery dropped $1.12 to settle at $70.17 a barrel in New York.
- Brent for August settlement fell $1.17 to settle at $74.79 a barrel.
What do you think? We’d love to hear from you, join the conversation on the
Rigzone Energy Network.
The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.
- Carbon Capture, CO2 Removal to Play Key Decarbonization Role: S&P Global
- EU Posts 2.8 Percent Lower Fossil Fuel CO2 Emissions for 2022
- USA Buying 6MM Barrels to Refill SPR
- Generative AI Will Have Profound Impact Across Sectors
- UK Government Announces New Oil and Gas Tax Changes
- Aker BP Completes Record-Breaking Drill for North Sea Discovery
- North Dakota Tribe Buys Enbridge Pipeline
- Short Sellers Refuse to be Cowed
- Iran Says There Are No Negotiations with USA Over Nuclear Deal
- Shell CEO's New Strategy Sees Long Term Future for Natural Gas
- Saudis Remind Global Oil Market Who is King
- USA EIA Hikes Up 2023 and 2024 Brent Oil Price Forecasts
- Debt Ceiling Deal Becomes Law
- Two Main Forces Have Come Together to Pull Down Commodity Prices
- Biden Urged to Demand Climate Emergency as Smoke Chokes Washington
- Macquarie Group Reveals Oil Market Outlook
- Americas Exploration Heats Up
- UK Offshore Energy Calls for Labour Party Meet
- Oil Down as Demand Concerns Supercede Saudi Cuts
- Aker BP's 1.07 Bboe North Sea Projects Get Parliament Nod
- Which Generation Is Most in Demand in Oil, Gas Right Now?
- Who Is the Most Prolific Private Oil and Gas Producer in the USA?
- Is There a Danger That Oil and Gas Runs out of Financing?
- What Will World Oil Demand Be in 2023?
- BMI Projects Gasoline Price Through to 2026
- North America Rig Count Reduction Rumbles On
- Saudis Remind Global Oil Market Who is King
- What New Oil and Gas Jobs Will Exist in the Future?
- What Does a 2023 USA Recession Mean for Oil and Gas in the Country?
- USA Oil and Gas Supported Nearly 11MM Jobs