empty
05.06.2023 10:36 PM
Oil prices rise amid expectations of production cuts

This image is no longer relevant

Oil prices continued rising on Monday following the results of the OPEC+ meeting.

In afternoon trades, Brent oil futures for August were up by 2.18%, hitting $77.79 per barrel. At the same time, the price of WTI oil futures for July had risen by 2.34% to reach $73.42 per barrel.

Market participants are assessing news on oil production volumes, defined by OPEC+ countries at their most recent meeting in Vienna. As decided at the meeting, the oil output will be reduced by 2 million barrels per day by the end of this year, amounting to 41,856 barrels daily.

Next year, production will be further cut by an additional 1.393 million barrels, reaching 40,463. Saudi Arabia and Russia plan to maintain their production cut at 500,000 barrels per day. Moreover, the Saudi announced plans to significantly reduce its oil production in July by 1 million barrels.

This decision by OPEC+ likely reflects the alliance's doubts about global economic growth over the next two years. This means that the cartel does not anticipate substantial demand for energy in the near future.

Recent economic growth data from leading countries around the world has been downbeat. For instance, GDP growth in the first quarter of 2023 was barely noticeable in European Union countries and the UK, with a mere 0.1% increase. Germany even fell into a recession. The US and Canada also showed insignificant GDP growth, only 1.3% and 0.8% respectively.

All hopes were pinned on China, as it is the world's largest importer of energy. But its performance also fell short of expectations, with a GDP growth of only 2.2% in the first quarter.

With such data from major economies, hopes for a stable demand for crude oil are fading.

In fact, even American oil companies do not believe that there will be a high demand for oil in the near future. The number of active drilling rigs in the US has dropped by 11.5% since the beginning of this year, indicating that even in the US, extraction volumes will be significantly lower.

In addition, the market anticipates that the US financial regulator has finally ended its run of rising interest rates. These expectations arose after the release of employment data showing that unemployment in the US increased to 3.7% in May (from 3.4% in April). These figures are extremely important for the US Federal Reserve, as they directly influence its interest rate decision.

According to the CME Group, the vast majority of analysts today (79.5%) are confident that the Fed will maintain the current interest rate level of 5-5.25% at its next meeting on June 13-14. The rest of the experts lean towards the regulator raising the rate by another 25 basis points. Regardless, much will depend on the inflation data: if it is not alarming, then all future rate hikes will be insignificant.

Andreeva Natalya,
Experto analítico de InstaForex
© 2007-2025
Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

Israel, Irán y el barril del miedo: el petróleo vuelve a subir

Durante la sesión asiática del miércoles por la mañana, el petróleo subió repentinamente un 1,5% gracias a las noticias procedentes de Oriente Medio. Las sospechas de un posible ataque

Natalia Andreeva 11:03 2025-05-21 UTC+2

El Bitcoin no teme los problemas de calificación crediticia de EE. UU. y sigue apuntando al alza. Los índices S&P 500 y Nasdaq100 también

La primera criptomoneda intenta mantener un nivel alto, aunque no siempre lo consigue. No obstante, el Bitcoin casi se ha consolidado en una posición de liderazgo, a pesar

Larisa Kolesnikova 11:03 2025-05-21 UTC+2

El dólar sin futuro: la venta masiva apenas comienza

Hasta hace poco, el dólar parecía intocable: el ancla mundial, el refugio monetario, la última palabra en confianza global. Pero hoy cada vez se escucha más otra retórica: sobrevaloración, agotamiento

Аlena Ivannitskaya 08:22 2025-05-20 UTC+2

Bitcoin: qué esperar esta semana. ¿Se mantendrá el récord con la subida hasta los $107 000?

A la primera criptomoneda le toca mantener sus posiciones, aunque a veces le resulta difícil. En este momento, el BTC ha salido adelante, por lo que la tarea de conservar

Larisa Kolesnikova 14:34 2025-05-19 UTC+2

El consumidor estadounidense pierde impulso: lo que dicen Target y Lowe's

En la próxima semana, Wall Street centrará su atención en los informes de las principales cadenas minoristas de EE. UU., que ayudarán a evaluar cómo afectan a la economía

12:39 2025-05-19 UTC+2

STOXX 600 alcanza nuevas cimas: ¿hacia dónde se dirige el crecimiento y qué les espera a los inversores?

Cisco sube tras la mejora de previsiones para el ejercicio fiscal UnitedHealth cae por un informe que menciona una investigación penal El índice europeo STOXX 600 apunta a su quinta

12:47 2025-05-16 UTC+2

Trump contra el dólar: por qué a la Casa Blanca le conviene una moneda débil

Algo extraño le está ocurriendo al dólar: se debilita, pero nadie lo reconoce oficialmente como una debilidad. El Departamento del Tesoro repite su mantra sobre una "moneda fuerte", Trump guarda

Аlena Ivannitskaya 13:23 2025-05-15 UTC+2

El Bitcoin y altcoins al alza, gracias a los datos de inflación y la tregua temporal entre EE. UU. y China

El miércoles 14 de mayo de 2025, el mercado de criptomonedas respiró aliviado tras la publicación de unos datos de inflación más moderados en EE. UU. de lo que esperaban

Natalia Andreeva 13:33 2025-05-14 UTC+2

NRG Energy despega tras un acuerdo de $12 mil millones — ¿nuevos actores en el sector energético?

Índices al alza: Dow +2,81%, S&P 500 +3,26%, Nasdaq +4,35%, Las acciones superan a los activos refugio por distensión comercial Apple sube ante posibles aumentos de precios en iPhone Índice

12:10 2025-05-13 UTC+2

El Bitcoin en picado: primero conquista la cima, luego retrocede. Beneficio del acuerdo entre China y EE.UU.

El lunes 12 de mayo, el precio del Bitcoin superó los $104 000, alcanzando un pico de $105 000. Sin embargo, posteriormente la primera criptomoneda experimentó una caída. Además

Larisa Kolesnikova 11:09 2025-05-13 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.