Whoa! Oil Prices Tumble After IEA Warns of OPEC+ Supply Cut Impact on Consumers
Did you hear the latest news about oil prices? On Friday, they took a nosedive, and you won’t believe the reason why! Apparently, the International Energy Agency (IEA) issued a warning that OPEC+ supply cuts could lead to a devastating oil supply deficit and negatively affect consumers. The Brent crude futures plummeted by 0.12% to $85.99 per barrel, and the West Texas Intermediate (WTI) crude futures fell by 0.06% to $82.11 a barrel. It’s crazy to think that these contracts are on track to record a fourth consecutive week of gains after OPEC+ decided to cut output last week. However, the IEA’s latest report is terrifying. They cautioned that production cuts could have an adverse effect on the global economic recovery and consumers. Can you imagine having to pay more for basic necessities?
But wait, there’s more! The IEA released its monthly report on Friday, forecasting that global oil supply could decline by 400,000 barrels per day (bpd) by the end of 2022. That’s not all; the world oil demand is expected to grow by 2 million bpd in 2023 to a record 101.9 million bpd. It’s mind-boggling to think about these numbers and what it could mean for the future.
However, there is a glimmer of hope. The US dollar index is trading at a one-year low, which has boosted demand for dollar-denominated oil, making it cheaper for investors holding other currencies. It’s exciting to think about the possibilities of what this could mean for the future of oil prices.
So there you have it, folks. Oil prices are falling, and the future is uncertain. Will we see a decline in oil supply, or will demand increase? Only time will tell.
