Brent oil prices have risen to over $85 per barrel, breaking the previous $75-$80 range, driven by a market view of tightening supply and anticipation of further economic stimulus from China.
- Aug 01, 2023, 5:00 PM CDT
Strong oil demand, particularly from China, and shrinking supplies due to OPEC+ cuts have led analysts to forecast sizable inventory drawdowns in the coming months, which are set to bolster oil prices further.Brent oil prices broke out of the $75-$80 range they had been stuck in for months and rallied to a three-month high of over $85 per barrel as the market begins to see evidence of tightening and expects fresh stimulus in China to provide a boost to the economy and oil demand later this year.
Going forward, inventory drawdowns loom, and additional Chinese economic stimulus is expected. Meanwhile, OPEC+ is unlikely to unwind all the cuts all at once as it is eager to support “the stability of the market,” namely, relatively high oil prices at above $80 per barrel, analysts say.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Could economic indicators give an early warning of a war over Taiwan?One area that could provide clues is commodities, namely energy, food and metals. The country would want to secure adequate supplies of each before launching an invasion
Read more »
Deflation is curbing China’s economic riseWill China’s cheapness persist? That will depend not just on how fast it grows relative to America, but how fast its manufacturing grows relative to homebound industries
Read more »
The world’s worst central banker retiresHe presided over economic collapse in Lebanon
Read more »