Brent (reference for Angolan exports) closed this Tuesday’s session at US$96.19 per barrel, down US$1.73, around 1.8 percent. WTI oil in the US closed at $91.13 per barrel, down $1.51 or 1.6 percent. Both market benchmarks rose the previous week largely on expectations of global supply tightening. Oil prices fell amid comments from US Federal Reserve officials about rising interest rates and their effect on the economy. Prices also suffered from the strengthening of the US dollar, which rose for a fourth session. A stronger dollar makes oil more expensive for non-US buyers. The prospect of tighter OPEC+ oil supplies limited price declines.
The Organization of Petroleum Exporting Countries and allies including Russia, known as OPEC+, decided last week to lower their production target by 2 million barrels a day. But signs that the group’s de facto leader, Saudi Arabia, will continue to serve Asian customers at full levels have dampened expectations of the impact of the cuts.
