Oil prices on track to record another monthly decline

According to the report of the International Economic Group of Fars News Agency, quoted by Reuters, after the publication of the disappointing economic statistics of the United States and uncertainty about the further increase in interest rates that will affect the demand outlook, the price of oil is on the way to record another monthly decline.

Brent North Sea crude oil rose 53 cents to $78.90 per barrel. Brent oil is on track to register its fourth month of price decline.

Brent oil prices rose in early trading after data showed that the euro zone returned to growth in the first three months, albeit slower than expected.

A barrel of US crude oil was traded with an increase of 33 cents to 75.09 dollars. This type of oil is also on the way of the sixth consecutive week of decline.

The statistics published on Thursday showed that the US economic growth in the first three months has slowed down less than expected.

Investors are concerned about the possible increase in interest rates and the anti-inflation policy of central banks, which could slow economic growth and reduce demand for energy in the United States, the United Kingdom and the European Union.

The next meeting of the Central Bank of America will be held on May 2nd and 3rd. It is expected that this bank will once again increase the country’s interest rate by 0.25 percent.

Russian Deputy Prime Minister Alexander Novak said yesterday that despite lower-than-expected demand from China, the OPEC+ group, which is made up of major producers, does not see a need to cut production further, but the organization can always change its policy if necessary. .

The Russian official noted that OPEC+, consisting of major oil producers, is still an effective tool in the global oil markets.

After oil prices fell to $70 a barrel in March, the lowest level in 15 months, Saudi Arabia and other OPEC+ oil producers earlier this month cut further production by 1.6 million barrels. Barrels per day announced that they surprised the market with this decision and the total reduction in OPEC+ production reached 3.6 million barrels per day, which will take effect from May.

Oil prices rallied after OPEC+’s surprise decision to further cut output, but have now eased amid market concerns about an economic slowdown and the impact it could have on demand.

At the same time, Novak pointed to the change in the direction of Russian oil exports and explained that about a fifth of the total Russian oil exports from Europe have been changed to other markets, mostly India and China. Russia has also cut about a third of its gas supply to the European Union.

U.S. crude oil and gasoline inventories fell more than expected last week as demand for motor fuels increased due to the summer travel season, International Energy Agency data showed this week.

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