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TOKYO (Reuters) – It fell on Wednesday, erasing gains from the previous session, as fears of a global economic slowdown curbing fuel demand outweighed expectations of further supply cuts due to August production cuts announced by Russia.
Brent crude fell 14 cents, or 0.2 percent, to 76.11 a barrel by 0027 GMT, after rising $1.60 on Tuesday.
US West Texas Intermediate crude futures reached $71.14 a barrel, up $1.35, or 1.9 percent, from Monday’s close, as Tuesday was a holiday in the United States.
“Oil prices have come under pressure again due to continuing concerns about a global economic slowdown and rising interest rates in the United States and Europe,” said Tomomichi Akuta, chief economist at Mitsubishi UFJ Research and Consulting.
“We expect the market to continue to move in both directions for some time, focusing on economic indicators in China and monetary policy of central banks,” he said, expecting Brent crude to trade around $75 a barrel.
Saudi Arabia, the world’s largest crude exporter, said on Monday it would extend its voluntary production cut of 1 million barrels per day (bpd) until August, while Russia and Algeria volunteered to reduce their production and export levels in August by 500,000 bpd and 20,000 bpd, respectively.
However, investors are still concerned about demand for oil after business surveys showed a slowdown in global factory activity due to slowing demand in China and Europe.
(Prepared by Mahmoud Salama for the Arabic Bulletin)
2023-07-05 01:43:00
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