Mumbai, 1 Ju1 (Commoditiescontrol): Crude oil prices edged up in early trade on Monday, bolstered by forecasts of a supply deficit driven by peak summer fuel consumption and ongoing OPEC+ production cuts. However, global economic uncertainties and increased non-OPEC+ output tempered the gains.
Brent crude futures rose 16 cents, or 0.2%, to $85.16 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 17 cents, or 0.2%, at $81.71 a barrel. Both benchmarks gained around 6% in June, with Brent consistently settling above $85 a barrel over the past two weeks. This trend followed the decision by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, to extend significant oil output cuts well into 2025.
Analysts predict these cuts, coupled with high summer transportation and air-conditioning demand, will lead to supply deficits in the third quarter as fuel stockpiles are depleted.
In the U.S., oil production and demand reached a four-month high in April, according to the Energy Information Administration's (EIA) Petroleum Supply Monthly report released on Friday. Market watchers are also monitoring the potential impact of hurricanes on oil and gas production and consumption in the Americas. The Atlantic hurricane season began with Hurricane Beryl, which became the earliest Category 4 hurricane on record. Beryl is heading towards the Caribbean's Windward Islands, where it is expected to bring life-threatening winds and flash flooding on Monday, according to the U.S. National Hurricane Center.
Meanwhile, China’s latest manufacturing data raised concerns about oil demand in the world’s second-largest consumer and top crude importer. China's manufacturing activity declined for the second consecutive month in June, and services activity fell to a five-month low, according to an official survey released on Sunday. These figures have renewed calls for further economic stimulus as China’s economy struggles to regain its footing.
Overall, while the outlook for crude oil remains optimistic due to anticipated supply deficits and OPEC+ cuts, ongoing global economic headwinds and rising production from non-OPEC+ countries continue to influence market dynamics.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
