Brent oil soared at the thought of global supplies growing scarcer, after Russia retaliated to western price caps with plans to lower its oil production by 500,000 barrels per day in March.
Prices for the global oil benchmark has now surged back into positive territory on a year-to-date basis, even as Brent tests its 100-day simple moving average for immediate resistance.
Still, Brent may yet require an even bigger catalyst to punch back above $90/bbl, amid persistent fears over weakening global demand ahead of a potential recession.
Russia’s decision to reduce its own output may not be enough to sway the broader OPEC+ alliance away from its wait-and-see approach, having kept its output settings unchanged at its meeting earlier this month.
Ultimately, the global demand outlook has to turn brighter in order for oil prices to be put on a sustainable path of recovering back towards recent heights.
Such a rosier outlook may be buffered if major central banks can soon pause on their policy tightening, though resurgent oil prices that keeps global inflation stubbornly elevated and invite more rate hikes would only scupper such hopes.
Brent oil is taking a pause just below $80/bbl mark, after having staged a comeback in the second half of March.
31 March 12:27
Brent oil is paring some of its gains this week, having rebounded off the psychologically-important $70 mark. Still, the global oil benchmark appears poised to head into the weekend having registered its first weekly advance in three weeks.
24 March 12:21
The global oil benchmark is endeavoring to pick itself off a 15-month low and trim its largest weekly drop so far in 2023. The outlook for short-term demand has been hit by contagion fears following the Silicon Valley Bank and Credit Suisse banking crises as risk-off appetite and dollar volatility roiled markets.
17 March 12:03
Brent’s climb above its 50-day simple moving SMA proved short-lived, as prices were resisted at their 100-day SMA before hurtling back down towards the psychologically-important $80/bbl mark.
10 March 12:36
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