Analysts from “Goldman Sachs” and “JP Morgan” said the impact of voluntary production cuts by the “OPEC+” alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, made itself felt after its entry into force this month.
JPMorgan said total exports of crude oil and petroleum products from the alliance fell by 1.7 million barrels per day as of May 16, adding that Russian oil exports are likely to fall by the end of May.
price movements
At 06:34 GMT, Brent crude futures fell 73 cents, or 0.97%, to $74.85 a barrel, with US West Texas crude for July delivery the most traded futures contract , fell 73 cents, or 1.02%, to $70.96. .
West Texas crude futures for June, which expire later Monday, fell 87 cents to $70.68 a barrel.
“I expect a lot of volatility in the coming days and a recovery in crude prices when an agreement is reached to raise the debt ceiling,” said Vandana Hari, founder of oil market analysis Vanda. Insights.
She added: “But oil’s room for improvement after that will be limited, with the return of unfavorable economic conditions to the fore.”
Analysts said reports of weak economic data out of China in recent weeks had raised concerns about demand from the world’s biggest oil importer and second-largest oil consumer.
Both crudes rose about 2% last week, their first weekly gain in five weeks, after wildfires in Alberta, Canada disrupted large amounts of crude oil supplies.
On Saturday, the G7 countries pledged at their annual leaders’ meeting to redouble their efforts to address Moscow’s circumvention of Russia’s oil price cap, “along with preventing ripple effects and preservation of the world’s energy supply”, without giving further details.
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