- West Texas Intermediate traded as high as $123.66 a barrel before retreating.
- Sour tone in equities undermines demand for black gold.
- OPEC+ revised down Russia’s oil production for the year.
Crude prices are in pullback mode after hitting new three-month highs. West Texas Intermediate a barrel reached an intraday high of $123.66 and is now trading around $119.38. The initial rally came after OPEC+ reported that it produced a total of 28.5 million barrels per day in May, down 176,000 bpd from April.
The body’s Monthly Oil Market Report also showed that members expect demand to continue to rise, while they revised down Russia’s liquids production forecast by 250,000 bpd, meaning they expect the country’s production to rise. contract by 170 bpd in the year. In addition, OPEC expects China’s decision to lift lockdown measures to increase the country’s imports.
Commodities turned south on the open on Wall Street as US indices extend their downward path amid fears of a US recession and ahead of the US Federal Reserve’s monetary policy decision. It has been widely anticipated that the central bank will raise the benchmark interest rate by 50 basis points, although the latest inflation figures prompted market players to raise their bets, now anticipating a 75 basis point hike.
Technical levels
Source: Fx Street
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