{"id":35267,"date":"2023-07-13T16:18:28","date_gmt":"2023-07-13T20:18:28","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/commodities\/oil-jumps-again-on-dollar-crash-opec-grandstanding-of-demand\/"},"modified":"2023-07-13T16:18:29","modified_gmt":"2023-07-13T20:18:29","slug":"oil-jumps-again-on-dollar-crash-opec-grandstanding-of-demand","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=35267","title":{"rendered":"Oil jumps again on dollar crash, OPEC grandstanding of demand"},"content":{"rendered":"
\n

Investing.com — With U.S. inflation data and rate hike concerns baked into the cake, OPEC did a grandstanding Thursday on its demand forecast for the current year and next to show all was hunky and dory with the oil market.\u00a0<\/p>\n

The result was another rally in both U.S. crude and global benchmark Brent pricing, even as some traders deliberated about other matters that barely make it into the conversation on oil these days: creeping production from Iran and Iraq, while headlines about proclaimed output cuts by the Saudis and Russians continue to saturate the airwaves.<\/p>\n

New York-based West Texas Intermediate, or , crude settled up $1.14, or 1.5%, at $76.89 per barrel. The U.S. crude benchmark is up 4% on the week, extending last week\u2019s 4.6% rally and the prior week\u2019s run-up of 2.1%.<\/p>\n

London-based finished the New York trading session up $1.25, or 1.6%, at $81.36, after a three-month high at $81.42. For the week, Brent is up 3.7% after last week\u2019s 4.8% rally and the prior week\u2019s 1.4% gain.<\/p>\n

The rally is \u201cprimarily on the back of the extension to the Saudi one-million-barrel cut to the end of August, alongside Russia’s 500,000 barrel export reduction,\u201d said Craig Erlam, analyst at online trading platform OANDA.\u00a0<\/p>\n

\u201cSome profit-taking at these levels wouldn’t be hugely surprising and may have come sooner if not for the U.S. CPI data.\u201d<\/p>\n

The softest U.S. inflation growth in more than two years reflected by Wednesday’s report for June has eased much of risk markets\u2019 fears about an aggressive Federal Reserve and hammered the to 15-month lows, delivering a boon to oil and other commodities priced in the currency.<\/p>\n

Notwithstanding that, China\u2019s weaker-than-expected economy since the start of the year remains a concern for those watching buying from the world\u2019s top importer.\u00a0<\/p>\n

OPEC\u2019s latest monthly report made no explicit forecasts on Chinese demand, except to say that \u201ccontinued improvements in China [are] expected to boost consumption of oil\u201d.\u00a0<\/p>\n

Customs data from Beijing, meanwhile, showed a different story: exports plunged 12.4% year-on-year in June \u2014 the most in three years \u2014 as higher interest rates worldwide dampened demand for Chinese goods.\u00a0<\/p>\n

\u201cOPEC\u2019s forecasts on demand are hunky-dory, yet the Saudis who lead OPEC are doubling down on production cuts,\u201d said John Kilduff, partner at New York energy hedge fund Again Capital. \u201cOne can understand their strategy of wanting to ensure no oversupply. But if they\u2019re really confident that demand is going to be that great, shouldn\u2019t they be adding barrels or at least keeping production even?\u201d<\/p>\n

Reuters observed the same, saying \u201cOPEC is pumping far less\u201d while claiming that demand would be \u201csolid\u201d.<\/p>\n

Vienna-based OPEC, or the Organization of the Petroleum Exporting Countries, said it expects world oil demand to rise by 2.25M barrels per day in 2024, a rise of 2.2%, compared with growth of 2.44M bpd in 2023.<\/p>\n

Reuters noted that OPEC’s demand growth forecast for 2024 was double that of the International Energy Agency, another closely watched forecaster which updated its outlook earlier on Thursday.<\/p>\n

OPEC\u2019s demand forecasts on China have no backing<\/h2>\n

The OPEC report also showed that the group\u2019s production rose by 91,000 barrels daily to 28.19M bpd in June, led by Iran and Iraq. Iran is one of the OPEC members exempt from cutting output.<\/p>\n

OPEC said the United States is expected to make the biggest contribution to non-OPEC supply expansion next year although it sees growth in U.S. tight oil, another term for shale, slowing to 500,000 bpd in 2024 from 730,000 in 2023.<\/p>\n

\u201cNone of these forecasts have any backing or make any sense,\u201d Kilduff said. \u201cChinese economic growth has been as underwhelming as anything while U.S. oil production has been continuously higher since the worst of the pandemic, with no signs of a slowdown coming. It\u2019s classic OPEC: Keep the market in perpetual fear of tight supply while under-delivering on pledged cuts to maximize price impact.\u201d<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Investing.com — With U.S. inflation data and rate hike concerns baked into the cake, OPEC did a grandstanding Thursday on its demand forecast for the current year and next to show all was hunky and dory with the oil market.\u00a0 The result was another rally in both U.S. crude and global benchmark Brent pricing, even […]<\/p>\n","protected":false},"author":1,"featured_media":3666,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[242],"tags":[83],"class_list":["post-35267","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-commodities","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nOil jumps again on dollar crash, OPEC grandstanding of demand | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Investing.com -- With U.S. inflation data and rate hike concerns baked into the cake, OPEC did a grandstanding Thursday on its demand forecast 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