WTI crude oil closed 2.33% lower in today’s session to $87.27, as a confluence of factors remains at play after OPEC slashed its demand outlook for 2022 as well as 2023.
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The consortium increased its September output by 146,000 barrels a day to 29.77 million barrels a day and for 2023, expects demand to rise by 2.34 million barrels per day.
Global demand outlook is seen softening in the coming period after the IMF scaled back outlook for 2023. Further, after the 2 million barrels a day production cut from OPEC+, the U.S. is taking a second look at its relations with Saudi Arabia.
The current U.S. administration had requested the kingdom to delay the recent supply cut.
In the meantime, U.S. natural gas also fell 2.44% to $6.435, continuing the bout of weakness it has seen in the past few weeks.
Here are some stocks that could be affected by this news:
- Energy Select Sector SPDR Fund (XLE)
- United States Oil Fund LP (USO)
- ProShares Ultra Bloomberg Crude Oil (UCO)
- Exxon Mobil (XOM)
- Chevron (CVX)
- Occidental Petroleum (OXY)
- United States Natural Gas Fund LP (UNG)
- Cheniere Energy (LNG)
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