{"id":20169,"date":"2023-06-08T18:32:07","date_gmt":"2023-06-08T22:32:07","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/oil-prices-end-lower-erasing-gains-seen-after-saudi-plan-for-production-cut\/"},"modified":"2023-06-08T18:32:08","modified_gmt":"2023-06-08T22:32:08","slug":"oil-prices-end-lower-erasing-gains-seen-after-saudi-plan-for-production-cut","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=20169","title":{"rendered":"Oil prices end lower, erasing gains seen after Saudi plan for production cut"},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0002142483\" role=\"document\">\n<p>Oil futures ended lower on Tuesday, with worries over the global economic outlook leading prices to give back  gains seen in the wake of Saudi Arabia\u2019s plan to further cut its production in July.  <\/p>\n<h2>Price action<\/h2>\n<ul class=\"articleList\">\n<li>\n      West Texas Intermediate crude for July delivery<br \/>\n        CL00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209723049\/delayed\" class=\"negative\">-0.43%<\/bg-quote><\/p>\n<p>        CL.1,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211629951\/delayed\" class=\"negative\">-0.43%<\/bg-quote><\/p>\n<p>        CLN23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209725418\/delayed\" class=\"negative\">-0.43%<\/bg-quote><br \/>\n       fell 41 cents, or 0.6%, to settle at $71.74 a barrel on the New York Mercantile Exchange, with prices giving back their 0.6% Monday gain. <\/p>\n<\/li>\n<li>\n      August Brent crude<br \/>\n        BRN00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209704782\/delayed\" class=\"negative\">-0.58%<\/bg-quote><\/p>\n<p>        BRNQ23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209705493\/delayed\" class=\"negative\">-0.58%<\/bg-quote><span>,<\/span><br \/>\n       the global benchmark, fell by 42 cents, or nearly 0.6%, to $76.29 a barrel on ICE Futures Europe. Prices for the contract had gained about 0.8% on Monday.<\/p>\n<\/li>\n<li>\n      Back on Nymex, July gasoline<br \/>\n        RBN23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/215376520\/delayed\" class=\"negative\">-0.40%<\/bg-quote><br \/>\n       added 1.6% to $2.56 a gallon, while July heating oil<br \/>\n        HON23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/215376439\/delayed\" class=\"negative\">-0.36%<\/bg-quote><br \/>\n       lost 0.4% at $2.37 a gallon.<\/p>\n<\/li>\n<li>\n      Juy natural gas<br \/>\n        NGN23,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210191117\/delayed\" class=\"negative\">-1.36%<\/bg-quote><br \/>\n       tacked on 0.8% to $2.26 per million British thermal units.<\/p>\n<\/li>\n<\/ul>\n<h2>Market drivers<\/h2>\n<p>Crude prices surged at the open Sunday evening after Saudi Arabia announced it would voluntarily cut production by an additional 1 million barrels a day in July, with the potential to extend the cut. The announcement came as the OPEC+ \u2014 the Organization of the Petroleum Exporting Countries and its Russia-led allies \u2014 concluded a meeting that saw the group extend existing production cuts through the end of 2024.<\/p>\n<div class=\"paywall\">\n<p>Sunday\u2019s gains faded though over the course of trading Monday, leaving crude with a modest gain at the end of the session. <\/p>\n<p>The oil market needs some assurance that the other OPEC+ members won\u2019t be taking advantage of Saudi Arabia and will be complying fully with previously agreed production cuts, said Fawad Razaqzada, market analyst at StoneX, a emailed commentary Tuesday. \u201cRussia could be the main culprit, as Moscow needs to sell as much oil as it can to finance its ongoing war in Ukraine.\u201d<\/p>\n<p>Oil futures came under renewed pressure Tuesday, with analysts citing concerns about global demand and U.S. oil futures giving back what they gained a day earlier.<\/p>\n<p>\u201cSaudi Arabia is attempting to keep the oil price up for reasons of domestic stability, but it faces two major problems,\u201d said Matt Gertken, chief strategist, geopolitical strategy and U.S. political strategy at BCA Research.<\/p>\n<p><strong>Read:<\/strong>\u00a0Saudi Arabia\u2019s planned oil cut could lead to \u2018cracks\u2019 within OPEC+ \u2014 but not a spike in gasoline prices<\/p>\n<p>The first is \u201cglobal oil demand is proving weaker than expected because of China\u2019s structural problems and the developed world\u2019s tight monetary policy,\u201d and the second is that global oil supply faces \u201cunexpected disruptions stemming from Russia\u2019s and Iran\u2019s geopolitical conflicts with the West,\u201d he told MarketWatch.<\/p>\n<p>The result is oil volatility that \u201ccould include major oil price shocks but will ultimately conclude in lower prices as a result of recession,\u201d said Gertken. <\/p>\n<p>Ultimately, \u201coil prices are likely to weaken due to disappointments in both global and Chinese growth, stemming from China\u2019s debt-deflation and globally tight monetary policy,\u201d he said.<\/p>\n<p>In a monthly report issued Tuesday, the Energy Information Administration raised its WTI and Brent oil-price forecasts for this year and next.<\/p>\n<p>It also forecasts U.S. production at record highs in 2023 and 2024, and said it expects global supplies top tighten following the OPEC+ decision to extend their production cuts through 2024. <\/p>\n<p><strong>Read:<\/strong> EIA predicts record-high 2023 and 2024 U.S. oil output<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/story\/oil-prices-fall-erasing-jump-seen-after-saudi-production-cut-a251a378?mod=investing\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil futures ended lower on Tuesday, with worries over the global economic outlook leading prices to give back gains seen in the wake of Saudi Arabia\u2019s plan to further cut its production in July. Price action West Texas Intermediate crude for July delivery CL00, -0.43% CL.1, -0.43% CLN23, -0.43% fell 41 cents, or 0.6%, to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10358,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-20169","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Oil prices end lower, erasing gains seen after Saudi plan for production cut | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Oil futures ended lower on Tuesday, with worries over the global economic outlook leading prices to give back gains seen in the wake of Saudi Arabia\u2019s\" \/>\n<meta name=\"robots\" content=\"index, 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