Brent to extend losing streak for fourth consecutive week
The front-month ICE Brent contract has declined by $2.68/bbl on the day, to $74.58/bbl at 09.00 GMT. The future contract is set to decline by about 1% over the past week.
PHOTO: Getty Images
Upward pressure:
OPEC has maintained its global oil demand forecast for 2023. In its latest Monthly Oil Market Report, the oil-producing group predicts consumption will still reach 101.9 million b/d this year, largely driven by China and India.
The Vienna-based alliance says China's economic rebound might be stronger than expected this year, while India could "surprise to the upside" with increased crude demand.
The OPEC prediction aligns with the most recent US Energy Information Administration's (EIA) forecast, in which the agency upheld its global oil demand estimate of 100.9 million b/d for 2023.
Downward pressure:
Brent's recovery is being undermined by the US debt ceiling impasse, with futures already down nearly 13% in May.
The chief executive of the world's largest private bank, JPMorgan Chase, has warned of adverse consequences if the US defaults on its debt obligations. In an interview with CNBC, Jamie Dimon foreboded financial market instability as America heads towards a potential debt default.
A possible US debt default could lead to “significant economic consequences”, OPEC has cautioned. It may lead to a decline in crude demand in one of the world's largest economies, causing ripples in the oil market.
By Konica Bhatt
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