{"id":10607,"date":"2024-05-03T11:41:43","date_gmt":"2024-05-03T11:41:43","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=10607"},"modified":"2024-05-03T11:41:43","modified_gmt":"2024-05-03T11:41:43","slug":"oil-prices-set-for-steepest-weekly-drop-in-3-months","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/10607\/","title":{"rendered":"Oil prices set for steepest weekly drop in 3 months"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices edged higher on Friday, but headed for their steepest weekly loss in three months as uncertainty about demand and high interest rates drove a sell-off limited by the prospect OPEC+ will continue to curb output.<\/p>\n

Brent crude futures for July rose 31 cents, or 0.4%, to $83.98 a barrel by 0755 GMT. U.S. West Texas Intermediate crude for June was up 26 cents, or 0.3%, to $79.21 per barrel.<\/p>\n

Both benchmarks are set for weekly losses as investors are concerned higher-for-longer interest rates will curb economic growth in the U.S., the world’s leading oil consumer, as well as in other parts of the world.<\/p>\n

Brent was on course for a 6.2% weekly decline, and WTI for a loss of 5.6% on the week.<\/p>\n

“We view the commodities sell-off over the last two days as collateral damage from the Fed repricing and non-fundamental in nature,” JP Morgan analysts wrote in a note.<\/p>\n

For further guidance, the market awaits U.S. economic data and indicators of future crude supply from the world’s top producer.<\/p>\n

The U.S. Federal Reserve held interest rates steady this week, and flagged high inflation readings that could delay rate cuts.<\/p>\n

Later on Friday, the U.S. Bureau of Labor Statistics will release its monthly nonfarm payroll report, a measure of the strength of the country’s job market the Fed takes into consideration when setting interest rates.<\/p>\n

Higher rates typically weigh on the economy and can reduce oil demand.<\/p>\n

Also on Friday, energy services firm Baker Hughes (BKR.O) is due to release its weekly count of oil and gas rigs, an indicator of future crude output.<\/p>\n

Geopolitical risk premiums due to the Israel-Hamas war, which has the potential to lead to oil supply disruption, have also faded as Israel and Hamas consider a temporary ceasefire and hold talks with international mediators.
\nFurther ahead, the next meeting of OPEC+ oil producers – members of the Organization of the Petroleum Exporting Countries and allies including Russia – is set for June 1.<\/p>\n

Three sources from the OPEC+ group said it could extend its voluntary oil output cuts of 2.2 million barrels per day beyond June if oil demand does not increase.<\/p>\n

JP Morgan, which expects OPEC+ to extend cuts beyond June, said that a counter-seasonal rise in oil inventories last month would be a concern for the producer group.<\/p>\n

“The stock builds in April will turn into draws in May through August and can push prices into the $90s in September,” the bank said.<\/p>\n

Updated on