Oil prices fell slightly in early trading on Monday, holding on to most of their recent gains amid expectations of tight supplies from OPEC+ cuts, attacks on Russian refineries, and upbeat Chinese manufacturing data.
Brent crude fell 17 cents, equivalent to 0.2 percent, to $86.83 per barrel by 00:17 GMT, after rising 2.4 percent last week, and US West Texas Intermediate crude recorded $83.06 per barrel, down 11 cents, or 0.1 percent, after gains of 3.2 percent. percent last week.
Trade volumes are expected to be weak on Monday, with many markets closed today due to the Easter holiday.
The two benchmarks closed higher for the third month in a row, with Brent remaining above $85 a barrel since mid-March, as the Organization of the Petroleum Exporting Countries and its allies, known as OPEC Plus, pledged to extend production cuts until the end of June, which could lead to a reduction in crude oil supplies during the summer. In the northern hemisphere.
Russian oil
Russian oil companies will focus on cutting production rather than boosting exports in the second quarter in order to distribute production cuts equally with other OPEC+ member states, Russian Deputy Prime Minister Alexander Novak said on Friday.
Drone attacks destroyed several Russian refineries; Which is expected to reduce Russian fuel exports.
“Geopolitical risks related to crude supply add to strong demand fundamentals in the second quarter of 2024,” Energy Aspects analysts said in a note.
The consulting company added that nearly one million barrels per day of Russian oil are idle amid the attacks, affecting Moscow’s exports of high-sulfur fuel oil, most of which are destined for Chinese and Indian refineries.
European and Chinese demand for oil
In Europe, demand for oil was stronger than expected; It rose by 100,000 barrels per day on an annual basis in February, according to what Goldman Sachs analysts said, compared to their expectations of a contraction of 200,000 barrels per day in 2024.
They added in a note that strong demand in Europe and weak growth in US supplies, along with the potential extension of OPEC Plus cuts until 2024, outweigh the downside risks resulting from the continued weakness in Chinese demand.
An official factory survey showed on Sunday that manufacturing activity in China grew for the first time in six months in March, supporting oil demand in the world’s largest crude importer even as the crisis in the real estate sector continues to pressure the economy.
Investors are also looking at US economic data for signs indicating when the Federal Reserve will cut interest rates this year, which will support the global economy and oil demand.
2024-04-01 01:53:28
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