Main information
- Oil prices have rebounded against the backdrop of commercial negotiations and production discounts.
- American energy companies reduce their drilling platforms to limit production and stabilize prices.
- Trade negotiations between the United States and China could improve the prospects for demand for oil.
Oil prices have rebounded on Wednesday and exceeded recent hollows observed over the past four years. Investors’ attention has focused on upcoming trade negotiations between the United States and China, as well as signs of reduced production in the United States. Brent -to -term contracts increased by 0.40 percent to $ 62.40 per barrel, while American West Texas US has increased by $ 59.42 per barrel.
OPEC+ accelerates production increases
These earnings follow a sharp drop in the two reference indices, which have reached their lowest level in four years, after OPEC+ decided to accelerate the increase in production. This decision has fueled concerns about the overabundance of the offer, exacerbated by the climbing of American customs tariffs and their potential impact on demand.
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Oil prospects dependent on pricing reductions
ING’s raw materials have underlined the positive influence of the commercial negotiations provided between the United States and China on Brent prices, thus extending a period of relief from the market. However, they have warned that substantial progress in reducing customs duties is essential to truly improve the prospects for oil demand.
The recent drop in oil prices has prompted certain American energy companies, including Diamondback Energy and Coterra Energy, to announce the reduction of their drilling platforms. Analysts believe that these measures will help stabilize prices by reducing production. Daniel Hynes, the main strategist for raw materials at the Anz bank, stressed that the latest announcements suggest a weakening of oil production in the coming months.
In addition, market sources citing data from the American Petroleum Institute have revealed a 4.5 million barrels in gross stocks for the week ending on May 2. Official US government data on stocks are expected later during the day. Analysts interviewed by Reuters provide an average drop of 800,000 barrels in American crude oil stocks last week.
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