All articles tagged with #oil surplus
Oil prices declined due to concerns over global surplus and supply disruptions from U.S.-Venezuela tensions, while potential peace negotiations between Russia and Ukraine and increased oil supply from Russia could influence future prices.
The International Energy Agency (IEA) has indicated a "substantial surplus" of oil for this year due to a slowdown in demand growth, reflecting concerns about the impact of the Omicron variant on the global economy. This surplus is expected to put pressure on the energy market and could lead to challenges for oil-producing nations.
OPEC+ announced further output cuts, which could eliminate the oil surplus that had built up in the markets. Meanwhile, gold markets have rallied, gaining over 8.9% in the past 30 days and 10.4% in the year-to-date, with the commodity finding support around $1,800/oz. Gold's correlation with the USD and real yields has been positive, and central banks have become net buyers, which could boost prices. Interest rate expectations for November 2023 are currently priced in at 3.80%, down from a peak of 5.65% just a week earlier.