Page 31 - Pec News Today

Crude oil prices decreased on Monday after a volatile week earlier. Hawkish comments from Fed officials that called for further rate hikes, an unexpected rise in consumer sentiment and strong corporate earnings weakened the outlook for crude oil prices.

While India imports Russian oil on a delivered basis that takes into account logistics and other costs, banks are demanding details on so-called free-on-board prices to ensure they fall at, or below $60 a barrel.

The biggest oil importers in Asia have been snapping up June-loading spot crude cargoes from the Middle East since OPEC+ announced a cut.

The EIA believes the global oil market will remain in surplus this year and next as demand growth is hurt by lower-than-expected economic growth.

Citigroup believes oil prices will dip rather than rally as weaker-than-expected Chinese demand counters the recent OPEC+ cut.

Global oil markets were already set to tighten in the second half of 2023, with the potential for a substantial supply deficit to emerge, said Fatih Birol, head of the Paris-based energy watchdog.

OPEC+ production fell by 680,000 bpd in March, the largest decline in 10 months.

Saudi Arabia will supply several refiners in North Asia with full contractual volumes in May despite its pledge to cut production by 500,000 bpd.

Oil prices are on course for a third consecutive weekly climb after OPEC+ sent prices soaring this week, although demand concerns are growing.

Russia has become a major source of crude oil to India after Moscow sent troops into Ukraine in February 2022.