Oil prices on August 16 rebounded from a two-day drop, alongside equities as expectations of further stimulus by central banks helped to ease recession concerns.
OPEC on Thursday forecast world demand for its crude will decline next year as rivals pump more, pointing to the return of a surplus despite an OPEC-led pact to restrain supplies.
Oil futures rose on Friday as tensions over Iran and an extension to output cuts by OPEC and its allies boosted prices, but mixed economic data limited the rally.
Oil is set for the biggest weekly decline since May as global demand concerns outweighed an OPEC+ pact to extend supply curbs into 2020 and worries that a renewed confrontation with Iran may threaten supplies.
Brent crude oil prices were only marginally up in Wednesday morning trade. Clearly, prices have failed to recover from the 4% drop seen on Tuesday, when the Organization of the Petroleum Exporting Countries (OPEC) and its allies (together known as OPEC+)
Oil prices slipped on Tuesday as worries that a weakening global economy would dent demand for the commodity outweighed OPEC’s decision to extend supply cuts until next March.
Ahead of a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies in Vienna, the most important oil producers there are indicating there’s likely to be an extension of a deal to curb oil production.
OPEC is on red alert over escalating US-Iran tensions that have fuelled strong oil-price gains — but the cartel and other crude-producing nations are unlikely to end output cuts at a meeting Tuesday, trader
OPEC is expected to roll over a deal on cutting supplies at a meeting next week and discuss deepening the curbs that have been in place since Jan. 1, Iraq’s oil minister on Thursday.
International crude oil prices have increased recently due to the mounting conflict between the US and Iran. The latest jitter came when Iran shot down a US drone over the Strait of Hormuz.