Oil Prices Rise on OPEC+ Cuts, But Demand Concerns Linger Amid Economic Slowdown

Today, crude oil prices surged to $86.26 per barrel, marking a 15% increase in just one month from $72.97 per barrel a month ago. However, prices were down 6.21% from six months ago when they stood at $91.62 per barrel, and experienced a significant 31% decrease from a year ago when they were at $113.16 per barrel. Oil prices rose in last one month due to OPEC+'s plans to cut more output, while concerns about Chinese demand recovery lingered. Crude oil had their fourth consecutive weekly gain after the International Energy Agency (IEA) forecasted record demand in 2023, but warned that OPEC+ output cuts could worsen an expected oil supply deficit in the second half of the year, potentially hurting consumers and global economic recovery. Signs of economic slowdown, such as reduced demand for diesel in China, Europe, and the US, are raising concerns of weaker industrial activity and reduced consumer spending, indicating a potential recession. Crude oil prices settled above $85 per barrel, supported by tight global oil supplies and a weaker dollar. The unexpected output cut by OPEC+ from May until the end of 2023 has raised concerns about seasonal demand from the US and China's reopening not being sufficient to reverse the declining trend in global refinery intakes. The IEA warned that inflated oil prices for necessities could strain consumers' budgets and negatively impact economic recovery and growth. The IEA also projected a global oil supply decrease of 400,000 barrels per day by the end of the year, citing expected production increases from outside of OPEC+ and a decline from the producer's bloc.   PolyMart does not provide any assurances or guarantees regarding the reliability, accuracy, completeness, or quality of the information available on its website, app, or through any of its services. Therefore, the company is not responsible for any errors, omissions, loss, or damage that may result from the use of the website or app. It is advisable for users to exercise caution and independently verify any information obtained from these sources before relying on it for any purpose