© Reuters. File photo: An oil tanker sails along Nakhodka Bay near the Russian port city of Nakhodka on August 12, 2022. REUTERS/Tatiana Meel
Ron Busso
LONDON (Reuters) – Oil prices fell on Friday after a Western energy watchdog warned that production cuts announced by OPEC+ producers could exacerbate oil supply shortages and hit consumers Did.
Futures fell 10 cents (0.12%) to $85.99 a barrel at 0820 GMT. West Texas Intermediate Crude Oil (WTI) fell 5 cents (0.06%) to $82.11 a barrel.
Both contracts rose for a fourth consecutive week as concerns over last month’s banking crisis eased and surprise decisions were made last week by other producers led by Russia, a group known as OPEC and OPEC+. It was planned. , further cut the output.
OPEC on Thursday flagged downside risks to summer oil demand as part of the backdrop for the 1.16 million barrels per day (bpd) cut.
The International Energy Agency (IEA) said in its benchmark monthly report on Friday that OPEC+’s decision could hurt consumers and the global economic recovery.
“Consumers facing higher prices for basic necessities will have to further fragment their budgets,” the IEA said in its monthly oil report.
“This bodes badly for economic recovery and growth,” he added.
The IEA said it expects global oil supplies to fall by 400,000 bpd by the end of the year, with projected growth in production from non-OPEC+ starting in March to fall against a drop of 1.4 million bpd from oil producers. , said it expected to be 1 million bpd.
At the same time, global oil demand is expected to increase by 2 million bpd in 2023 to a record 101.9 million bpd.
It traded at its lowest level in about a year after the release of US consumer and producer price data this week raised hopes that the Fed was nearing the end of its rate hike cycle.
A weaker dollar makes dollar-denominated oil cheaper for investors holding other currencies, boosting demand.
