Prices fall slightly, but market fundamentals remain tight

Oil prices are retreating, but Brent 1st-nearby was still above $93/b yesterday. It is back to $91/b, mainly due to the widespread correction in risky assets after the surge in the US inflation rate and the very hawkish comments of a Fed member (see Daily Eco on this subject). The progress of the Iranian nuclear talks and the likely willingness of the Biden administration to bring Iranian oil back into the market to help ease prices is another moderating factor.

That said, OPEC highlighted the upside risks to its global oil demand forecast (+4.2mb/d in 2022) in its monthly report yesterday. On the other hand, according to OPEC figures, its production increased by only 64kb/d in January, while the OPEC+ agreement forecast a 250kb/d increase).

In Asia, we are witnessing a rise in trucker protests in several countries (Thailand, Bangladesh, Indonesia) due to the surge in diesel prices which is causing them to work at a loss. The situation in India is also very tense. This can only reinforce supply problems and inflationary pressures.

EnergyScan oil news
Share this news :

You might also read :

July 22, 2021

Broad rebound in risky assets

Concerns about the spread of the Delta variant seem to have significantly diminished suddenly: bond yields rebounded, the US 10y nearing 1.3%. Stock markets were…
March 8, 2022

Russia hinders the return of Iranian oil

Brent 1st-nearby briefly fell back below $120/b yesterday before rising again and now trading above $126/b. The price levels are so high that one gets used…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?