SINGAPORE, May 15 (Reuters) – Oil prices were steady on Monday as strong sentiment about tightening supplies from OPEC+ cuts and continued U.S. purchases for reserves competed with concerns about fuel demand in the world’s top oil consumers, the United States and China.
Brent crude futures were down 2 cents at $73.91 a barrel by 0800 GMT, while US West Texas Intermediate crude was at $69.34 a barrel, up 4 cents.
Last week, both benchmarks fell for a fourth consecutive week, the longest streak of weekly declines since September 2022, on concerns that the United States could enter a recession amid risk of a historic default at the beginning of June.
“With the uneven reopening in China and concerns that the US faces a growth slowdown at a time when the X-date for the debt ceiling is fast approaching, led by a rally in the US dollar, market sentiment toward crude remains tepid at best,” said IG analyst Tony Sycamore.
However, global crude supplies could tighten in the second half as the OPEC+ grouping, the Organization of the Petroleum Exporting Countries and its allies, including Russia, make further output cuts that reduce sour availability. of crude oil.
The group announced in April that some members would further cut output by about 1.16 million barrels per day, bringing the total volume of cuts to 3.66 million bpd, according to Reuters calculations.
However, Iraq does not expect OPEC+ to make further cuts in oil output at its next meeting on June 4, its oil minister, Hayan Abdel-Ghani, said.
The US may begin buying back oil for the Strategic Petroleum Reserve (SPR) after completing a congressionally mandated sale in June, Energy Secretary Jennifer Granholm told lawmakers on Thursday.
Meanwhile, leaders of the Group of Seven (G7) countries may announce new measures at their May 19-21 meetings targeting the avoidance of sanctions involving third countries. , said officials with direct knowledge of the discussions.
The tightening of sanctions would also seek to undermine Russia’s future energy production and curb trade that supports Russia’s military, the people said.
Reporting by Florence Tan; Editing by Muralikumar Anantharaman
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