Crude oil futures settled higher on Tuesday amid some speculation that OPEC and allies might consider another cut in production next month, and on warning from Saudi Arabia’s energy minister that oil prices may not continue to decline.
Hopes about U.S. lawmakers agreeing on a debt ceiling deal soon, and data showing an unexpected rise in U.S. private sector activity contributed as well to the rise in oil prices.
West Texas Intermediate Crude oil futures for July ended higher by $0.86 or about 1.2% at $72.91 a barrel.
Brent crude futures were up $0.97 or 1.28% at $76.96 a barrel a little while ago.
Saudi oil minister Prince Abdulaziz bin Salman today warned market speculators to “watch out,” reiterating his warning that they could face pain ahead.
“Speculators, like in any market, there are there to stay. I keep advising that they will be ouching. They did ouch in April. I don’t have to show my cards, I’m not [a] poker player (…) but I would just tell them, watch out,” the minister said at the Qatar Economic Forum.
Recently, several members of the OPEC+ announced they would cut their crude oil production by a combined 1.6 million barrels per day.
The S&P Global US Composite PMI rose to 54.5 in May 2023, up from 53.4 the month before, a preliminary estimate showed. The latest reading signaled the fastest pace of expansion in the country’s private sector since April 2022.
The S&P Global Flash US Manufacturing PMI declined to 48.5 in May of 2023 from 50.2 in April, well below forecasts of 50, preliminary estimates showed.
The S&P Global US Services PMI increased to 55.1 in May 2023, up from 53.6 the month before and well above market expectations of 52.6, a preliminary estimate showed.
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