Oil prices are falling
Oil prices fell by more than two percent on Wednesday as fears of supply disruption due to the conflict in the Middle East eased, a day after Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries (OPEC), confirmed that it would help stabilize the market.
Contract settlement
Brent crude futures fell $1.83, or 2.1 percent, to reach $85.82 per barrel at settlement. US West Texas Intermediate crude fell $2.48, or 2.9 percent, to settle at $83.49.
The two crude oil standards rose by more than $3.50 a barrel on Monday due to fears that the clashes between Israel and the Palestinian Hamas movement would escalate into a broader conflict that could disrupt global oil supplies.
Prices stabilized slightly lower yesterday, Tuesday, after Saudi Arabia said it was working with regional and international partners to prevent escalation, and reaffirmed its efforts to achieve stability in oil markets, according to Reuters.
Russia and Saudi Arabia met in Moscow on Wednesday, and Russian President Vladimir Putin said that coordination between OPEC+ will continue “in order to enhance the predictability of the oil market.”
OPEC+ is a partnership between OPEC and its allies, including Russia.
US investors are looking to the minutes of the Federal Reserve’s September monetary policy meeting scheduled for release later Wednesday for clues about future interest rate decisions.
Raising interest rates to curb inflation may slow economic growth and reduce demand for oil.
US Treasury Secretary Janet Yellen said she still expects a smooth landing for the US economy despite the “additional concerns” resulting from the situation in Israel.
The US Energy Information Administration expected in a report that global oil inventories would decline by 200,000 barrels per day in the second half of 2023 as a result of Saudi Arabia’s voluntary reduction in production and the decline in production targets in OPEC+ countries.
2023-10-11 20:06:41
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