Oil prices fell on Thursday, for the fourth consecutive session, heavy for disappointing economic data in the United States and investors that hope to see the production of OPEC+ more than expected in June. Around 11:40 am Metropolitan France, the price of the Brent barrel of the North Sea, for delivery in July, which is the first day as a use as a reference contract, lost 2.03% to $ 59.82. Its American equivalent, a barrel of western Texas Intermediate, for delivery in June, fell from 2.22% to $ 56.92.
On the supply side, the market now seems to think that the organization of oil export products and its allies (OPEP+) has changed its strategy.
Saudi Arabia, the most influential member of the OPEC+, has gone from a “market stability objective to a real offensive in the market share”, estimates that Stephen Innes, Spi Asset Management analyst. Ryad and the other members of the OPEC+, driven by “posters, such as Kazakhstan and Iraq,” according to the analyst, referring to countries that exceed their fees, could announce on Monday, May 5, a stronger production increase in June.
American GDP retreat
As for demand, the perspectives seem to darken as the commercial war between Washington and Beijing continues. The American economy became negative in the first quarter, a period in which most customs tasks were not even in their place yet. In the annualized rhythm, a measure favored by the United States, the Gross Domestic Product (GDP) hired by 0.3%, according to a first estimate published Wednesday by the Ministry of Commerce. This result, the first US decrease since 2022, is significantly lower than the expectations of most analysts.
“The downward review of economic growth perspectives is generally accompanied by a reduction in world oil demand,” said Tamas Varga, a PVM analyst. The prospects of a market with more barrels and demand weakening form a very negative set for black gold courses and explain that the latter is exchanged at such a low level, below $ 60.
Source: BFM TV
