On June 13, oil prices remained near their lowest level in nearly three months due to continued concerns about demand prospects in the United States and other regions.
WTI crude oil rose slightly above $67 a barrel after falling about 8% in the previous three trading sessions.
A slowing U.S. economy and a resilient Russian export added to downward pressure on oil prices, offsetting Saudi Arabia’s recent decision to cut output by 1 million bpd.
Goldman Sachs cut its oil price forecast for the third time in six months, saying it expects higher supply and lower demand. Short-dated contract spreads also showed weakness.
Brent’s spot spread (the difference between the front-month contract and the next-month contract) was at one point close to parity, a sign of ample supply.
Still, there were signs of new physical demand, with U.S. sour crude hitting its highest level in a year after the U.S. pledged to replenish its Strategic Petroleum Reserve.
In addition, slowing U.S. inflation will support the Federal Reserve’s pause in raising interest rates this week, which could boost energy demand.
