Global Courant 2023-05-30 12:43:45
ANKARA
Oil prices fell on Tuesday amid demand concerns over the US debt ceiling crisis, uncertainty over the US Federal Reserve’s (Fed) interest rate policy, and recession fears.
International benchmark Brent crude was trading at $76.58 a barrel at 09.52 (0652GMT) local time and was down 0.67% from $77.10 a barrel in the previous trading session on Friday.
American West Texas Intermediate (WTI) was also trading at $72.37 a barrel, down 0.41% from the previous session’s close of $72.67 per barrel.
After talks last week between US President Joe Biden and House Speaker Kevin McCarthy over the debt-limit crisis, both announced they would ease selling pressure on the market, ignoring the possibility of a default on Sunday.
Meanwhile, lingering recession fears continue to hold oil prices down as markets await the Fed’s next rate decision.
Analysts predict that US inflation will not slow down at the desired pace due to strong economic activity and will increase the possibility of rate hikes.
On the supply side, despite different messages from the two biggest members, traders are following the production decisions of the major producers in the OPEC+ group.
Expectations for further production cuts rose after Saudi Energy Minister Abdulaziz bin Salman warned oil traders to be “careful” last week.
However, Russian Deputy Prime Minister Alexander Novak announced on Thursday that energy prices are approaching “economically justified” levels, implying that the group’s current generation strategy will continue.
In early April, some OPEC+ countries decided to cut production by 1.6 million barrels per day (bpd) in addition to their current cuts of 2 million barrels per day. Russia quickly did the same, announcing it would extend the current 700,000 bpd production cuts until the end of the year.
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