Monday, June 5, 2023

Crude oil prices rise due to supply crunch

Oil prices rose marginally on Monday as OPEC+ cuts and resumption of stock-buying by the United States rekindled fuel demand concerns in the United States and China, the world’s top crude consumers. Hui.

promise of brent crude oil US West Texas Intermediate crude was up 41 cents, or 0.6%, at $70.45 a barrel.

Last week, both the benchmarks fell for the fourth week in a row, the longest streak of weekly declines since September 2022, on concerns The United States may be entering a recession. At the risk of a historic default in early June.

Nevertheless, the world supply of crude oil may decrease in the second half, because Organization of the Petroleum Exporting Countries And its allies, including Russia, collectively known as OPEC+, are making additional production cuts that are reducing the amount of sour crude.

The group announced in April that some Members will further cut production approximately 1.16 million barrels per day, bringing the total amount of cuts to 3.66 million bpd, as calculated by reuters,

however, Iraq does not expect OPEC+ Its oil minister, Hayan Abdel-Ghani, said it would further cut oil production at its next meeting on 4 June.

Meanwhile, crude oil flows from northern Iraq to Turkey’s Ceyhan port have yet to resume after Baghdad’s request to resume last week, industry sources said on Monday, leaving global supplies tight. Keeping up helped.

May start buying back oil for the United States strategic petroleum reserve (SPR) after completing a Congress-mandated sale in June, Energy Secretary Jennifer Granholm told lawmakers Thursday.

Meanwhile, leaders of the Group of Seven (G7) are expected to announce new measures against tax evasion at their meetings on May 19-21. sanctions on russia by third countries, according to officials with direct knowledge of the talks.

Tightening restrictions will also weaken the future energy production People said to curb trade with Russia and those supporting the Russian military.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news


Please enter your comment!
Please enter your name here