OIL
Brent oil prices fell during early Monday trading, as expectations of lower economic growth impacted the outlook for global oil demand. With most central banks still battling to control inflation and set for further interest rate hikes, a growing number of traders and investors are assuming a scenario of lower-than-previously-expected oil demand. Unless there is an increase in demand for crude, the cuts in production recently announced by OPEC+ are unlikely to offer much support to the price of the barrel, with the whole scenario largely hinging on developments in China. The world’s largest oil importer is returning to normality, with recently published economic figures showing a robust recovery in activity, which if sustained in the second half of the year could still shift the outlook for oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Brent oil prices fell during early Monday trading, as expectations of lower economic growth impacted the outlook for global oil demand. With most central banks still battling to control inflation and set for further interest rate hikes, a growing number of traders and investors are assuming a scenario of lower-than-previously-expected oil demand. Unless there is an increase in demand for crude, the cuts in production recently announced by OPEC+ are unlikely to offer much support to the price of the barrel, with the whole scenario largely hinging on developments in China. The world’s largest oil importer is returning to normality, with recently published economic figures showing a robust recovery in activity, which if sustained in the second half of the year could still shift the outlook for oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades