Oil Market Gains Respite Amid US Interest Rate Hike Worries
Oil Market Gains Respite Amid US Interest Rate Hike Worries.
RIYADH: Oil prices showed signs of stabilizing on Thursday, with a potential pause in US interest rate hikes and the passing of a crucial vote on the US debt ceiling bill offsetting a report of rising inventories in the world's biggest oil consumer.
US Federal Reserve officials suggested that interest rates could be kept on hold this month, and the US House of Representatives passed a bill suspending the government's debt ceiling, improving the chance of averting a disastrous default.
CMC Markets analyst Tina Teng said, "Oil markets may have been oversold in the last two trading days.
Sentiment rebounded amid the debt bill's passage in the House and the Fed's rate hike pause signal." However, mixed demand indications from China, the world's biggest oil importer, and industry data showing a rise in US crude inventories have weighed on the market.
Market sources citing American Petroleum Institute figures on Wednesday said that US crude inventories rose by about 5.2 million barrels last week.
The current mood is one of pessimism, Tamas Varga of oil broker PVM said.
Investors have been pragmatic and risk averse of late." In focus is the June 4 meeting of the OPEC+ producer group, in which the Organization of the Petroleum Exporting Countries and allies including Russia will discuss whether or not to cut oil production further.
British multinational bank Barclays has slashed the average price of its Brent crude forecast for this year from $92 to $87 a barrel.
The bank also slashed its price forecast of Brent for 2024 as it cut the average projected price to $87 a barrel from $97.
China's CNOOC Ltd.
has begun production at the Buzios5 well off the coast of Brazil, the company said in a statement on Thursday.
The well is the fifth phase of the Buzios oil field off Brazil's southeast coast.
At an average water depth of 1,900 meters to
US Federal Reserve officials suggested that interest rates could be kept on hold this month, and the US House of Representatives passed a bill suspending the government's debt ceiling, improving the chance of averting a disastrous default.
CMC Markets analyst Tina Teng said, "Oil markets may have been oversold in the last two trading days.
Sentiment rebounded amid the debt bill's passage in the House and the Fed's rate hike pause signal." However, mixed demand indications from China, the world's biggest oil importer, and industry data showing a rise in US crude inventories have weighed on the market.
Market sources citing American Petroleum Institute figures on Wednesday said that US crude inventories rose by about 5.2 million barrels last week.
The current mood is one of pessimism, Tamas Varga of oil broker PVM said.
Investors have been pragmatic and risk averse of late." In focus is the June 4 meeting of the OPEC+ producer group, in which the Organization of the Petroleum Exporting Countries and allies including Russia will discuss whether or not to cut oil production further.
British multinational bank Barclays has slashed the average price of its Brent crude forecast for this year from $92 to $87 a barrel.
The bank also slashed its price forecast of Brent for 2024 as it cut the average projected price to $87 a barrel from $97.
China's CNOOC Ltd.
has begun production at the Buzios5 well off the coast of Brazil, the company said in a statement on Thursday.
The well is the fifth phase of the Buzios oil field off Brazil's southeast coast.
At an average water depth of 1,900 meters to