Bloomberg reports on the main influences trapping oil prices.
Bloomberg is gated, but in brief:
- Oil traders grappling with tension between warnings of a weakening market and strong current prices near $70 a barrel.
- The International Energy Agency and the US Energy Information Administration expect a surplus of oil next year, with the IEA projecting a surplus of 2 million barrels a day.
- According to Francisco Blanch, head of commodities and derivatives research at Bank of America Corp, the surplus in the second half of the year will ultimately weigh on prices.
- France’s TotalEnergies SE warned the market is facing abundant supply as the OPEC+ group unwinds output curbs, even as slowing global growth weighs on demand.
- Norway’s Equinor ASA said its new Johan Castberg field is operating at full capacity
- Brazilian offshore asset starting soon, additional barrels expected outside OPEC
This article was written by Eamonn Sheridan at investinglive.com.