Macroeconomic factors continue to weigh on oil prices this week, despite the insistence of OPEC+ members that the group’s production cuts will tighten the oil market.
Oil markets are now fully focused on the upcoming OPEC+ meeting, with reports that the group may deepen cuts being counteracted by an apparent lack of unity amongst OPEC members on the issue.
Traders, this week, focused on rising U.S. crude oil inventories, record American oil production, weaker Chinese refinery and economic data.
Given the economic mayhem that energy price-fuelled inflation has caused for Western governments since Russia’s invasion of Crimea, the last thing they want is another oil production shutdown in Libya that would push oil prices higher again.
Oil prices edged lower on Wednesday following fresh indications of weak demand, and as the market awaited a crucial interest rate decision by the U.S. Federal Reserve.
Oil prices firmed on Friday (17 March) after a meeting between Saudi Arabia and Russia calmed markets amid strong China demand expectations, but were headed for their biggest weekly falls since December as a banking crisis rocked global financial and oil markets.
Oil is coming off its worst weekly rout since April 2020 as the turmoil in the banking sector fuels further concern that the global economy will tip into recession and hit demand, adding to a woeful first quarter for West Texas Intermediate and Brent futures.
Internal tensions are rising within the Net-Zero Banking Alliance, an offshoot of the Glasgow Financial Alliance for Net Zero, as transition-focused members get annoyed that less conscientious ones are being allowed to continue financing oil and gas.
Oil and gas industry contract values saw a significant quarter-on-quarter (QoQ) increase of 27% in Q4 2022, reveals GlobalData, a leading data and analytics company, with Middle East contracts driving this increase
The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, has said that the current quick-win interventions by the organisation and industry stakeholders could boost Nigeria’s oil production by about 900,000 barrels per day in the short term.