The Oil Price International Oil report said that the oil markets are on alert, as the next OPEC + meeting looms on the horizon and the outcome of the US debt ceiling crisis.
US President Joe Biden and Republican House Speaker Kevin McCarthy reached an agreement in principle to raise the federal government's debt ceiling of $31.4 trillion, ending a months-long crisis.
The Oil Price report, which was published yesterday, indicated that Russia had calmed the market’s concerns about expectations of the next OPEC + decision, as Russian Deputy Prime Minister Alexander Novak eased tension over expectations of cutting production at the OPEC + meeting on June 4, saying that the meeting may not do so, but rather New steps approved.
Oil Price indicated that Russia also announced its reduction of 500,000 barrels per day, initially for the months of March and April, and will now extend until the end of this year, explaining that Russia prefers that its partners in the OPEC + group leave oil production unchanged when they meet next week, according to Al-Eqtisadiah newspaper.
Crude oil prices achieved a second consecutive weekly gain, with Brent crude gaining 1.7% and US crude 1.6%, amid optimism that the US debt ceiling crisis will soon be resolved, along with the expectation of a new production cut by the OPEC + alliance.
For its part, Rig Zone International Oil Report said that crude prices rose for the second week in a row as investors watched the progress of debt ceiling talks to avoid default in the United States.
He stated that supply dynamics remain in focus as there are mixed indications about the possibility of further cuts from producers.
The report highlighted that crude oil is still down nearly 10% this year amid a lackluster economic recovery in China - its largest importer - and due to the aggressive monetary tightening campaign by the US Federal Reserve there may be more increases in US interest rates as traders price in Another quarter-point increase over the next two meetings.
He promised that there was little sign of a significant reduction in Russian oil production. He pointed out that shipments of Russian crude oil outside the borders are rising and not decreasing even at the time that is supposed to be close to three months after reducing its production by 500,000 barrels per day, in response to the sanctions and price ceilings imposed by the Group of Seven countries.
And he stated that, on the other hand, we find that the external flows of refined products are declining, but they are always declining in the current period, and in fact they have decreased by a slightly lesser percentage than they usually were between the first and second quarters of each year.
The report described the performance of the US dollar in the past week as being in turmoil and it was somewhat strange that crude oil was able to rise in the face of this, noting that the currency markets are thinking about the implications of the US debt ceiling deal being concluded and the rising Treasury bond yields. continuously.
He pointed out that looking to the future, crude oil may struggle until global growth prospects find a more stable foundation, with some good economic data issued from the United States turning in the right direction, but China is still struggling to gain momentum for growth since the removal of epidemic restrictions. The report noted that the price movement in crude oil witnessed a volatility that is still relatively low, indicating that the market is likely to be comfortable with the current price level.
