Concerns over the global consumption outlook counterbalanced the struggle by big OPEC producers to pump enough supply to satisfy growing demand in a seesaw session on Tuesday, and oil prices increased little. Both benchmarks were up $1 per barrel at one time, but Brent crude lost ground and ended up just 44 cents higher at $74.36 per barrel, after losing over 2% on Monday.
As the energy balance alters, Russia predicts global oil demand will not recover to its 2019 peak before the pandemic, according to the TASS news agency. However, as the world recovers from the coronavirus pandemic, the Organization of Petroleum Exporting Countries (OPEC+) and its allies, notably Russia, struggled to pump enough oil in August to satisfy current consumption. As part of the OPEC+ deal, several countries looked to have produced less than projected, implying that a supply shortfall could widen.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
