Brent was forced to unwind some of its recent recovery as oil markets remain gripped by demand-side fears.
Besides contenting with the prospects of a recession, oil prices were met with a barrage of bearish reasons this week:
Such downcast reminders have offset the presumed boost from incoming OPEC+ supply cuts, along with the prospects of the US soon refilling its strategic reserves.
As mentioned in last Friday’s article, “Brent’s recent rebound is unlikely to be sustained …”.
Sure enough, the global oil benchmark is unwinding some of its technical rebound, as demand-side fears continue to fester across markets.
Oil prices must first wade through this swamp of uncertainty over the near-term, before hopes of a market deficit in 2H 2023 can punch through and potentially restore Brent back to the $80-90 range.
Markets are widely expecting that OPEC+ would stand pat on its production levels at its weekend meeting.
2 June 13:21
Although on course for back-to-back weekly gains, oil’s advance for this week was significantly pared after Russia hinted that another OPEC+ supply cut may not be forthcoming at its early June meeting.
26 May 13:57
The global oil benchmark is on course to post a weekly advance of over 3%, ending a run of four straight weekly declines.
19 May 13:27
Brent’s recent rebound is unlikely to be sustained as long as negative sentiment continues to cloud oil markets.
5 May 11:57
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