Saturday, 3 June 2023

Oil prices firm as markets await clarity on OPEC’s next move

Oil prices remained almost unchanged during early trading today, Friday, while markets await clarity on the next moves in the oil production policy of OPEC and its allies, after conflicting messages that made it difficult to predict the results of their next meeting.

By 0022 GMT, Brent crude fell four cents to $76.22 a barrel, while US West Texas Intermediate crude rose nine cents, or 0.1 percent, to $71.92 a barrel.

According to “Reuters”, the two crude oil recorded a decline of more than two dollars a barrel when settling on Thursday, after Russian Deputy Prime Minister Alexander Novak played down the possibility of the OPEC + alliance making more production cuts at its meeting in Vienna on the fourth of June.

Read More

Russian President Vladimir Putin said on Wednesday that energy prices were approaching “economically justified” levels, also suggesting that there may not be an immediate change in the alliance’s production policy.

Their statements contradict statements made by Energy Minister Prince Abdulaziz bin Salman this week, in which he called on short sellers to “exercise caution.”

Some investors interpreted this as a sign that OPEC + may consider further production cuts

Markets continue to monitor the US debt ceiling talks, as President Joe Biden and Republican House Speaker Kevin McCarthy seemed close to reaching an agreement to cut spending and raise the debt ceiling.

The dollar rose for the fifth consecutive session against a basket of currencies, which curbed oil prices

A rising US currency makes commodities denominated in it more expensive for holders of other currencies, which weakens demand.

Related Posts