Oil prices edge lower as US debt ceiling talks, China demand concerns linger
May 22, 2023
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May 22, 2023 (MLN): Oil prices inched down on Monday as caution around U.S. debt ceiling talks and concerns about demand recovery in China offset support from lower supplies from Canada and OPEC+ producers.
Brent crude is down 0.24% on the day, currently trading at $75.43 per barrel.
While West Texas Intermediate crude (WTI) is down by 0.2% to $76.66 per barrel.
Notably, Brent crude and West Texas Intermediate (WTI) both found some supporting ground in the last week, after falling for four consecutive weeks, marking a weekly gain of 2.26% and 2.58% respectively.
Vandana Hari, founder of oil market analysis provider Vanda Insights stated that "I expect plenty of volatility in the coming days and a bounce upward in crude prices as and when a deal is reached to raise the debt ceiling," as Reuters reported.
But crude's headroom thereafter will be limited as other economic headwinds return to the center stage, she added.
The Group of Seven (G7) countries agreed at their yearly summit on Saturday to step up their efforts to stop Russia from breaking the limits on its oil and fuel exports. They said they would do this without harming other countries or disrupting the global energy supply, but they did not give any details.
International Energy Agency (IEA) in its latest monthly report warned of a looming shortage in the second half when demand is expected to eclipse supply by almost 2 million barrels per day (bpd).