Oil Prices Fall Due to Concerns About Fuel Demand in the US and China

Oil prices fell today, Monday, with the impact of concerns about fuel demand in the United States and China, the largest global consumers, outweighing optimism about tight supplies due to any production cuts from the “OPEC +” group and the resumption of the United States buying for its reserves.

By 01:30 GMT, Brent crude futures fell 43 cents, or 0.6%, to $73.74 a barrel, and West Texas Intermediate crude futures fell 37 cents, or 0.5%, to $69.67 a barrel.

Last week, the two benchmarks fell for the fourth week in a row, which is the longest continuous period of decline on a weekly basis since September 2022, due to fears that the United States would enter a recession due to the existence of a “high possibility” of a historical default on debt repayment in the first two weeks of June. June.

Investors sought safe havens such as the US dollar, which boosted the US currency and made the commodities denominated in it more expensive for holders of other currencies.

And the “OPEC +” group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and oil producers, including Russia, announced in April additional production cuts of about 1.16 million barrels per day, bringing the total reduction in production to 3.66 million barrels per day.

For his part, Iraqi Oil Minister Hayan Abdul-Ghani said that Iraq is not expected to participate in further cuts in oil production within the framework of the “OPEC +” group at the next meeting of the group in June.

US Energy Secretary Jennifer Granholm told members of the House of Representatives on Thursday that the United States may begin buying back oil for the Strategic Petroleum Reserve after completing a congressional-approved sale in June.

Also read: The US oil price is below $ 70 for the first time since the “OPEC +” production cut