Oil prices have declined following the largest weekly surge since the beginning of April, as persistent worries about demand continue to weigh on investors.
Brent futures experienced a 0.7% decrease, trading around $78 per barrel, after climbing 4.8% last week due to a commitment by Saudi Arabia and Russia to cut supply.
The market is demonstrating robustness, with speculators ramping up their optimistic outlooks on the global benchmark and West Texas Intermediate crude, which has seen a 0.8% decline, settling around $73 today.
In a recent CBS interview, Treasury Secretary Janet Yellen warned that the possibility of a US recession cannot be entirely dismissed, instilling a sense of caution in the market.
Overall, oil is still about 9% lower for the year, partly attributed to China’s sluggish economic rebound and aggressive tightening measures by central banks.
Reports today indicated that China’s consumer inflation rate remained stable in June, while prices at the factory gate further declined, signifying persistent weakness in demand.
The Biden administration announced last Friday that it will acquire an additional six million barrels of crude oil, as part of its ongoing efforts to gradually replenish the nation’s emergency reserves.
