Oil falls concurrently with news of Saudi Arabia

Oil prices fell on Thursday after the Financial Times reported Saudi Arabia’s willingness to increase production
in the event of a significant decline in Russian oil production due to sanctions

The source told the Financial Times: “Saudi Arabia is aware of the risks and realizes
that it is not in its interest to lose control of oil prices

Evest follows market developments in the following report

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Oil falls concurrently with news of Saudi Arabia’s willingness to increase production

Upcoming OPEC meeting

US stock indices trade in the Red Zone

Biden: Europe considers possible pressure actions on Russian oil

Oil falls concurrently with news of Saudi Arabia’s willingness to increase production

Brent crude futures for August fell by $2.13 (1.83%) on the London Futures Exchange, to $114.16 per barrel
Brent crude rose by $0.69 (0.6 percent) to $116.29 per barrel on Wednesday

The July futures price for West Texas Intermediate crude at the time was lower in electronic trading
on the New York Mercantile Exchange (NYMEX) by $2.21 (1.92%), to $113.05 per barrel
During the previous session, the futures contract rose by $0.59 (0.5%) to $115.26 per barrel

At Wednesday’s meeting, experts from the OPEC + Technical Committee reduced the projected oil surplus
in the global market in 2022 to 1.4 million barrels per day from 1.9 million barrels
per day (bpd) expected a month ago, Interfax sources reported

The outlook took into account inflation, the Russian-Ukrainian conflict
the COVID-19 pandemic in Asia, the release of strategic reserves by consumer countries and other factors

Upcoming OPEC meeting

On Thursday, the meeting of the OPEC + Ministerial Monitoring Committee will take place first
after which an extensive ministerial meeting will be held
A Financial Times source said Saudi Arabia and the UAE were looking into whether
there is a possibility of announcing their intention to increase production at Thursday’s
OPEC + meeting, but no final decision had been taken on the matter

According to Bloomberg analysts: “The pace at which oil prices can fall will depend on surplus production
that OPEC countries can benefit from without fully managing their emergence into Russia

US stock indices trade in the Red Zone

US stock indices ended trading in the Red Zone on Wednesday, although they began the session rising

The Dow Jones Industrial Index value fell by 0.54% to 32813.23 points
Salesforce was the only gainer among the index components, with no other stock rising more than 1%
Walmart was among the leaders of the decline by (-2.5%), 3M by (-1.9%) and American Express by (-1.8%)

Standard & Poor’s 500 Index fell by 0.75% to 4101.23 points
The Nasdaq Composite Index lost 0.72 points to 11994.46

Ironically, the market has been adversely affected by strong data on manufacturing activity
as, according to investors, it has increased the likelihood that the Federal Reserve will tighten monetary policy more sharply

As it became known on Wednesday, the business activity index in the US manufacturing sector
(ISM Manufacturing Index) rose in May by 56.1 points from 55.4 points in April
Experts expected it to decline by an average of 54.5 points, according to Trading Economics

On Friday

the main statistics on the US labor market will be released
Analysts expect this to indicate unemployment fell in May by 3.5% from 3.6% in April
as well as an increase in the number of jobs by 325,000 after an increase of 406,000 the previous month

“There is some irony in the fact that pressure on the US stock market could be intensified if statistica
l data indicates continued strong growth of the US economy and higher government
bond yields to the highest levels of the current session
” said analysts at Saxo Bank

In addition, on June 1, the Fed will begin reducing the number of assets on its balance sheet, which has reached $9 trillion

“Uncertainty about the potential impact of the Fed’s ‘quantitative tightening
which will reach full strength within three months, may also affect market sentiment,” Saxo Bank said

Biden: Europe considers possible pressure actions on Russian oil

US President Joe Biden says European countries are considering actions to ensure Moscow sells oil at a price below the market price

In Europe, they are considering further restrictions on Russian oil purchases, at the same time
there is intense discussion about how to continue buying this oil while selling it at limited prices

Addressing the White House, Biden said he did not provide additional details
In the European Union, the media has not reported such discussions

and In the meantime, EU leaders agreed earlier this week to embargo oil shipped from Russia by sea

In addition, a number of countries, in particular Germany, have announced that they will also deny Russian oil access through pipelines
All these measures are set to eventually affect about 90% of the oil that EU countries import from the Russian Federation

Biden also noted

that gas and food prices in the United States are unlikely to fall anytime soon

GOP rivals often criticize Biden for failing to pay to lower fuel prices
This has become even more important as the mid-term congressional elections scheduled for November this year approach
According to many observers, if Democrats, led by Biden
do not make significant progress in solving the US’s internal problems, they will fail in the election

Prior to that, Bloomberg wrote that senior US officials had split into two camps on the issue
of setting a strategy for further sanctions against Russia

According to IAEA sources, some support secondary sanctions
while others suggest seeking to reduce the world’s oil prices

“They (the second group of officials – IF) advocate a different, untested approach
capping oil prices, which will allow countries to buy energy resources from Russia
while limiting Moscow’s income,” Bloomberg notes

artical name Oil falls concurrently with news of Saudi Arabia

Oil falls concurrently with news of Saudi Arabia

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