Oil futures reached a stable level at the start of this week, following the Saudi Arabia energy minister’s remarks that the oil market was moving towards balance. This was despite the fact that slowing demand in Asia look like a real possibility.
Brent crude futures were trading on the market at $50.31(£37.86) per barrel by just before 5:00 am GMT on Monday, which represented almost no change to the price.
Meanwhile, U.S. crude prices were down just five cents to $48.94 (£37.58).
Settlement for West Intermediate Texas was not revealed due to the fact that America celebrates Independence Day on 4th July.
Speaking to Reuters, BMI Research analaysts said:
“Fundamentals offer limited scope for further price gains and we expect Brent to trade broadly sideways over the coming months.”
Saudi Arabia’s energy minister and the secretary general of OPEC, whose members are amongst the biggest oil producers in the world, both agreed that the worldwide oil markets were moving towards a balanced state and that current oil prices reflected this move. This will be good news for major oil producers like Q8, which produces Q8 T750 15W/40.
Crude futures have also been receiving support following concerns that Nigeria’s output could be lessened due to attacks on the African nation’s oil facilities by militant groups, which have been taking place in the past few months and have plunged the country’s oil output to a 30-year low.
However, the country has since said that production is rising, and along with rises in oil production worldwide, this could also lead to a levelling off in oil prices.