The OPEC+ group of oil producers has extended its production cuts totaling 3.66 mln bpd until 2025, maintaining a controlled supply while taking advantage of the current price of the benchmark Brent crude at over $85/barrel. OPEC forecasts that cumulative oil-related investment requirements from now until 2045 will amount to about $14 trln, or around … Read more
Silver (XAG/USD) declined below .00 in Tuesday’s European session as the DXY Dollar Index rebounded. The speculation for the Fed reducing interest rates in September has strengthened due to signs of economic slowdown in the US.
The WTI crude oil price has been on a losing streak for the fifth trading session due to a hawkish outlook on interest rates by Federal Reserve policymakers. Fed officials are uncertain about the disinflation process and are considering further tightening of monetary policy. The next trigger for oil prices will be the OPEC meeting scheduled for June 1 to discuss supply policy.
The West Texas Intermediate (WTI) crude oil price rose to around .20 a barrel in the Asian session on Monday after Saudi Arabia raised June crude prices for most regions.
The West Texas Intermediate (WTI) futures dropped to .00 due to weak demand outlook and expectations of the Federal Reserve keeping interest rates higher. The Fed’s confidence in price pressures declining to 2% has been dented by higher consumer price inflation and strong labor market data. Expectations of higher crude oil inventories and fears of oil supply tightening due to Iran’s attack on Israel have also impacted the oil price. Treasury Secretary Janet Yellen mentioned the possibility of new sanctions on Iran, which could affect their oil exports.
– The benchmark West Texas Intermediate (WTI) crude oil price was around .80 per barrel in Asian trading on Tuesday.
– Oil markets are awaiting the release of the Consumer Price Index (CPI) data from the United States, with expectations for a modest uptick in February’s US inflation figures, but the annual index is forecasted to hold steady.
– A strong CPI report could decrease the likelihood of an immediate rate cut by the Federal Reserve, potentially bolstering the US Dollar and challenging crude oil prices.
– The probability of a rate cut in June has slightly decreased to 68.9%, according to the CME FedWatch Tool.
– Market participants are looking forward to monthly market reports from OPEC, the International Energy Agency (IEA), and the Energy Information Administration (EIA) to assess the global demand outlook.
– ANZ analysts expect demand projections from the monthly reports of the three major oil agencies to remain largely unchanged, but any unexpected upward revisions could alleviate demand concerns.
– The US has led global oil production for the sixth consecutive year, with a record-breaking average production of 12.9 million barrels per day (bpd).
– US crude oil production reached a new monthly record high of over 13.3 million bpd in December.