- Oil extends losses amid renewed rate-hike concerns
- April ’23 WTI lost 75c this morning to trade around $77/Bbl
- Yesterday, crude fell by nearly $3 following remarks from Fed Chair Powell indicating that the central bank may hike rates faster than expected
- A stronger U.S. Dollar is also weighing on prices. The U.S. dollar, which normally trades inversely with oil, had risen to a three-month high versus a basket of currencies after Powell's remarks
- OPEC is concerned about a demand slowdown in US and Europe (Bloomberg)
- OPEC Secretary-General Haitham Al-Ghais warned that slowing oil demand in Europe and the US is a concern for the global market even if Asia is undergoing "phenomenal" growth
- He added that "we see a divided market — almost like two markets," and it is crucial to ensure both supplies and "security of demand" in regions where inflation is crimping consumption
- Global consumption is seen rising by 2.3 MMBbl/d in 1H2023 to an average of 101.87 MMBbl/d in 2023, according to OPEC’s monthly report
- However, the market is expected to tighten in 2H2023 as global inventories decline and the OPEC+ cartel, led by Saudi Arabia, plans to maintain production levels for the rest of the year