- Oil trades slightly higher after giving up all of the OPEC-driven gains amid persistent demand fears
- June ’23 WTI gained 41c this morning to trade around $74.71/Bbl
- Weakening demand for fuel and a general sense of caution in the global markets are putting downward pressure on prices
- The market awaits the Fed’s rate hike decision next week for indications about the health of the economy
- OPEC Chief blames lack of Investment for oil price volatility (BBG)
- OPEC+ Secretary General Haitham AL-Ghais said on Wednesday that volatility in oil prices is being driven by calls to halt investment rather than OPEC+’s policies
- He added that factors impacting markets include COVID-19, monetary policy, stock movements, SPR releases, etc
- The remarks come after IEA Executive Director Fatih Birol advised OPEC+ to be cautious about boosting oil prices
- OPEC+ sees no need for further output cuts despite lower Chinese demand, says Russian Deputy Prime Minister Novak (BBG, Reuters)
- However, he added that the cartel can always make adjustments if needed
- Novak said that Russia had reached its targeted output this month, with oil and gas condensate production expected to drop from 535 million tons in 2022 to 515 million tons in 2023 due to planned cuts