Oil prices have witnessed the third consecutive week of decline, closing on Tuesday at its lowest point since December 2021. Brent Crude traded for $77.08 on Monday at 3 pm, while West Texas Intermediate (WTI) traded for $73.27.
“Now it definitely feels like they’re at the bottom,” Ed Morse, Citi’s Global Head of Commodities Research commented. It was anticipated oil prices will surge due to a tight market caused by rising demand. However, concerns about slower economic growth in United States and China are weakening energy demand.
Goldman Sachs predicts oil prices will hike following a recovery in Chinese demand. It was also anticipated China’s demand will counterbalance demand, slowed elsewhere.
CBA’s Vivek Dhar stated “a tightening oil market in H2 2023 will now rely more heavily on OPEC+, particularly Russia.” Russia, along OPEC+ countries, have announced production cuts, currently in effect and lasting until the end this year.
