Crude oil heads for third straight weekly loss as supply and demand weigh on market
How much have oil prices rebounded in the past two days, and what sparked this rebound?
Oil prices have rebounded over the past two days after a sell-off, with hopes that lower rates might boost demand. The rebound comes despite worries that demand may be softening even as OPEC+ plans to increase production. However, the two crude benchmarks, West Texas Intermediate and Brent, are still down about 2% for the week.
How did poor U.S. manufacturing data and weak private payrolls impact oil prices this week?
Poor U.S. manufacturing data and weak private payrolls contributed to the decline in oil prices this week. The soft economic figures raised concerns about potentially weaker demand for oil, which put downward pressure on prices. This came as OPEC+ members announced plans to increase production, further weighing on the market. Although oil prices have rebounded over the past two days, they are still down about 2% for the week.
What are the details of OPEC+'s plan regarding the phasing out of production cuts starting in October?
OPEC+ plans to phase out 2.2 million barrels per day in production cuts starting in October. This decision was made to address the concerns of softening demand and to increase production. The phasing out of production cuts will begin when refineries are down for fall maintenance and then ramp up as demand typically weakens heading into winter. However, some analysts believe that if the market deteriorates substantially and cannot absorb additional barrels, OPEC+ is likely to pause any production increases.