Global oil prices stabilize amid OPEC+ supply constraints, robust U.S. fuel demand outlook
(MENAFN) On Tuesday, global oil prices stabilized, buoyed by the potential continuation of OPEC+ supply restrictions in their upcoming June 2 meeting and the anticipated strong fuel demand from the United States during the summer season. These factors helped to balance out concerns about the prolonged rise in US interest rates. Monday's trading saw oil prices increase by over 1 percent during the quiet trading sessions due to public holidays in Britain and the United States, driven by expectations of heightened US demand as the summer holiday season commenced.
Specifically, Brent crude futures for July saw a rise of 38 cents, or 0.5 percent, reaching USD83.48 a barrel by 13:27 GMT. Similarly, US West Texas Intermediate (WTI) crude futures increased by USD1.43, or 1.8 percent, settling at USD79.15 per barrel compared to Friday's settlement price, after being traded without settlement due to the American holiday.
Charalambos Pisouros, an analyst at XM, noted that the recent recovery in oil prices is likely driven by expectations of strong fuel demand, with increased driving times during the summer holiday season contributing to this trend. Tamas Varga of brokerage BVM added that despite the brighter mood in the past two days, ongoing concerns about interest rates are likely to restrain significant further increases in oil prices in the near future.
The upcoming OPEC+ online meeting on June 2 is highly anticipated, with traders and analysts expecting the alliance to maintain its voluntary production cuts at 2.2 million barrels per day. Varga suggested that assuming no changes in production levels is a reasonable expectation, indicating that market stability might continue under these production parameters.
Specifically, Brent crude futures for July saw a rise of 38 cents, or 0.5 percent, reaching USD83.48 a barrel by 13:27 GMT. Similarly, US West Texas Intermediate (WTI) crude futures increased by USD1.43, or 1.8 percent, settling at USD79.15 per barrel compared to Friday's settlement price, after being traded without settlement due to the American holiday.
Charalambos Pisouros, an analyst at XM, noted that the recent recovery in oil prices is likely driven by expectations of strong fuel demand, with increased driving times during the summer holiday season contributing to this trend. Tamas Varga of brokerage BVM added that despite the brighter mood in the past two days, ongoing concerns about interest rates are likely to restrain significant further increases in oil prices in the near future.
The upcoming OPEC+ online meeting on June 2 is highly anticipated, with traders and analysts expecting the alliance to maintain its voluntary production cuts at 2.2 million barrels per day. Varga suggested that assuming no changes in production levels is a reasonable expectation, indicating that market stability might continue under these production parameters.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment