Bad Oil Prices! Markets Ignore Saudi Output Cuts, Focus On Weaker-than-expected Demand
Bad oil prices! Markets ignore Saudi output cuts, focus on weaker-than-expected demand
On June 13, market analyst Tsvetana Paraskova said that although Saudi Arabia announced a unilateral production cut of 1 million barrels per day in July last week, oil prices fell for the second consecutive week this week, as market participants continued to focus on signals that demand was lower than expected , rather than tightening supply.
So far, oil traders and speculators appear to have largely ignored Saudi attempts to tighten the market further this summer, as well as warnings by Saudi Energy Minister Salman since late May, when OPEC+ was the most powerful The oil tycoon told traders to "be careful" and stop betting on lower oil prices.
After initial hesitation following those comments, traders continued to place bearish bets on oil futures in the week ahead of the OPEC+ meeting on June 4.