Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Oil Prices Mixed as Markets Weigh Supply Cuts, Weakening Demand

Published Oct 10, 2022 10:01PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LCO
+0.70%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.14%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick 

Investing.com-- Oil prices saw choppy trade on Tuesday as markets weighed potentially weaker demand against supply disruptions from the Russia-Ukraine conflict and OPEC production cuts. 

London-traded Brent oil futures, the global benchmark, were flat at $96.19 a barrel, while U.S. West Texas Intermediate futures fell 0.1% to $91.06 a barrel by 22:08 ET (02:08 GMT). 

Both contracts slumped around 2% on Monday, after hawkish comments from Federal Reserve Vice Chair Lael Brainard drove up concerns over a potential economic slowdown stemming from rising interest rates, which could dent crude demand. 

Fears of slowing demand in China also weighed, as the country reported fresh COVID outbreaks that could result in more lockdown measures. China is the world’s largest crude importer, and has seen a severe drop in demand due to COVID-related restrictions this year. 

Chinese trade data due on Friday is expected to provide further cues on crude demand. 

But in an upside signal for crude prices, markets positioned for more Russian supply disruptions due to an escalation in the Ukraine war. 

Russia on Monday launched one of its biggest ever aerial assaults on Ukraine cities, in apparent retaliation for the destruction of a major bridge connecting Russia and Crimea. The move saw Ukraine vow to strengthen its armed forces, marking a potential escalation in the long-running conflict. 

Ukraine was also forced to halt electricity exports to Europe, a move that could potentially increase crude demand in the bloc. 

Oil prices rose sharply last week after the Organization of Petroleum Exporting Countries and allies (OPEC+) voted to cut crude production by 2 million barrels per day (bpd) - its biggest cut since the 2020 COVID pandemic. 

The move was largely to stabilize crude prices, with the cartel having recently signaled that it was not comfortable letting oil prices drop below the $90 mark. 

But the cut drew criticism from the U.S. government, which is trying to bring down gasoline prices ahead of the November midterm elections. 

Washington also threatened to freeze diplomatic cooperation with Saudi Arabia over the Ukraine conflict, given that higher oil prices benefit Russia. 

Crude prices saw increased volatility in the past two months as markets were caught between mixed demand and supply signals. But analysts expect prices to increase in the coming months, driven largely by supply cuts and steadying demand in major importers.

Oil Prices Mixed as Markets Weigh Supply Cuts, Weakening Demand
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Vito Tagliano
Vito Tagliano Oct 10, 2022 10:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oil & Gas is the only Investors safe haven until 2024 the rest of the sectors going drop like sack of potatoes!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email