Oil prices go up as seasonal demand and OPEC+ cut boost market

Oil&Gas Materials 23 May 2023 13:00
Trend News Agency
Oil prices go up as seasonal demand and OPEC+ cut boost market

BAKU, Azerbaijan, May 23. World oil prices are rising moderately, Trendreports.

According to trading data, traders are assessing the prospects for seasonal demand and OPEC+'s efforts to reduce production, also following the news on the US debt ceiling.

The price of July futures for Brent Crude Oil rose by 0.16 percent to $76.1 per barrel, and July futures for WTI — by 0.21 percent to $72.2.

Markets are assessing the prospects for summer when the demand for gasoline is traditionally growing due to car trips.

Traders continue to evaluate OPEC+'s efforts to reduce production at the same time. Earlier in May, Russian Deputy Prime Minister Alexander Novak said that Russia has reached the promised volume of reduction in oil production of 500,000 barrels per day since May.

Meanwhile, Secretary General of OPEC Haitham al-Ghais noted that the global oil sector needs investments of more than $12 trillion by 2045.

Traders continue to follow the news from the US, where discussions are taking place on raising the debt ceiling. Speaker of the House of Representatives Kevin McCarthy said after a meeting with US President Joe Biden that he was confident in the success of negotiations on the debt ceiling, and Biden called the meeting with McCarthy on the public debt productive.

McCarthy noted that Biden's inaction could lead to a US default.

Global risks may impact the economic prospects, which negatively affects the forecasts of oil demand.