The benchmark crude WTI is marginally down by 0.21% to $69.02 today at 10.48 a.m. EST. Traders remain cautious following the events in Russia as the world keeps a watch over happenings in the nuclear-armed country.
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Earlier gains in oil prices were nearly as short-lived as the Wagner Group’s march toward Moscow. While the Group’s leader, Yevgeny Prigozhin has made his way to Belarus, the complete aftereffects of the mutiny are potentially yet to unfold.
Meanwhile, global recession worries and subdued growth in China continue to impact sentiment in oil prices. In another development, OPEC now expects worldwide oil demand to reach 100 million barrels a day by 2045. The International Energy Agency though expects this demand to nearly grind to a halt over the coming years.
Natural gas, on the other hand, is up 0.87% to $2.75 today and has climbed about 12.7% over the past month.
A survey by Dallas Fed indicated a zero score in business activity growth across 150 energy groups in Q2, according to the Financial Times. Even as signs of demand uptick sprout up, lower energy prices are pointing to tepid production growth. This is the lowest business activity mark in years and points to weakening expansion alongside a decrease in drilling rigs deployed in the U.S.
After recent production cuts by Saudi Arabia and sanctions on Russia, energy supply from the U.S. is anticipated to play a major role on the global stage and one can expect energy producers in the country to pick up steam only when and IF energy prices move northward over the coming periods.
At $62.46, the United States Oil Fund ETF (USO) still remains nearly 24.7% lower over the past year. Here is a list of energy stocks that can be influenced by the latest developments in the energy markets.
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