Business News Asia
Asian oil prices fell back from a five-week high on Monday as investors took profits from last week’s strong gains and from forecasts that supply will be tight after OPEC and OPEC+ production cuts.
Brent crude fell 81 cents, or 0.8%, to $97.11 a barrel.
WTI crude was $91.88 a barrel, down 76 cents, or 0.8%.
Both contracts fell, as did Asian equities, amid weak trade with Japan and South Korea over the holidays.
Last week, Brent and WTI rose to their highest levels since March after OPEC and its allies, including Russia, agreed to cut their production targets by 2 million barrels per day.
OPEC+ production cuts, which precede Russian oil sanctions in the EU, will tighten market supply. And EU sanctions on crude oil and Russian oil products will take effect in December and February.
The bank’s analysts have raised their crude oil price forecast and expect the Brent price to rise above $100 per barrel in the coming months.
CMC says an easing of China’s COVID-19 control measures in the fourth quarter and 2023 could stimulate oil demand and give oil prices more upside.
Last Friday, Russian President Vladimir Putin signed a decree appointing a new operator for the Exxon Mobil Corp.-led Sakhalin-1 oil and gas project in Russia’s the Far East.
Oil production at the Sakhalin-1 project fell to just 10,000 barrels per day (BPD) in July from 220,000 barrels per day before Russia’s incursion into Ukraine.
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Monday, October 10, 2022