Beijing, April 10 (BNA): Oil prices remained virtually unchanged on Monday as investors bet the prospect of tighter supply from OPEC+ producers from May against concerns about weak global growth that could dampen fuel demand.
Brent crude futures fell 7 cents to $85.05 a barrel by 0630 GMT, while US West Texas Intermediate crude recorded $80.67 a barrel, down 3 cents.
Both contracts rose for the third week in a row last week, returning to levels last seen in November, after the Organization of the Petroleum Exporting Countries (OPEC) and its allies surprised investors by announcing more production cuts that would begin in May, according to Reuters.
The group known as OPEC+ will cut off supplies of sour crude from Middle Eastern producers led by Saudi Arabia.
Following the announcement, the world’s largest oil exporter raised May crude prices for clients in Asia and the United States. State oil giant Saudi Aramco has also notified several Asian customers that they will receive full contract volumes in May despite the production cuts.
Separately, investors are watching the progress of talks between Iraq and Kurdistan to resume northern oil exports that could bring more sour crude to the global market.
More support for prices The number of US oil rigs fell by two to 590 last week, while the number of gas rigs fell by two to 158, according to a report by Baker Hughes Co on Thursday, in a sign that US production will not rise soon. condition.
In global financial markets, the closely watched US inflation report to be released this week may help investors gauge the path of interest rates in the near term.
Despite expectations that the Federal Reserve may slow down interest rate hikes due to the recent banking crisis, borrowing costs could continue to rise if inflation remains strong, analysts said.
Sharp rises in interest rates have boosted the dollar, making dollar-denominated commodities like oil more expensive for investors who hold other currencies.
WWA