Oil prices fall amid concerns about tightening supply
Oil prices fell on Monday as concerns about fuel demand in the top global oil consumers, the United States and China, offset bullish sentiment about tightening supplies from OPEC+ cuts and a resumption in U.S. buying for reserves.
Brent crude futures fell 26 cents, or 0.35%, to $73.91 a barrel by 0638 GMT, while U.S. West Texas Intermediate crude was at $69.34 a barrel, down 20 cents, or 0.29%.
Last week, both benchmarks fell for a fourth consecutive week, the longest streak of weekly declines since September 2022, over concerns the United States could enter a recession on “significant risk” of a historic default within the first two weeks of June.
Investors sought safe havens such as the U.S. dollar, strengthening the currency and making dollar-denominated commodities more expensive for holders of other currencies.
Still, global crude supplies could tighten in the second half as the OPEC+ grouping, the Organisation of the Petroleum Exporting Countries and its allies, including Russia, is making additional output cuts that are reducing crude availability.
The group announced in April that some members would cut output further by around 1.16 million barrels per day, bringing the total volume of cuts to around 3.66 million bpd.
Reuters/Hauwa Abu
