Early Tuesday morning in Asia, oil prices were up marginally as markets weighed the impact of a surprise supply cut by OPEC+ against concerns of slowing economic growth in the wake of a slew of weak industrial data from around the world.
As of 11.23 A.M. Bangkok time, Brent oil futures rose 0.47% to $85.33 a barrel, while West Texas Intermediate crude futures rose 0.51% to $80.83 a barrel.
Oil prices spiked to multi-month highs on Monday after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced an unexpected reduction in production of more than 1.6 million barrels per day (bpd).
Both contracts have increased by more than 6% as a result of OPEC+’s latest action, and some analysts have even predicted that Brent will end the year at or above $100 amid tighter markets.
This was joined by a flood of disappointing factory data from around the world, adding to worries that a global economic slowdown may dampen crude demand this year.
On Monday, statistics revealed that manufacturing activity in the United States, Europe, Japan, and the United Kingdom all fell in March. Several analysts have begun to question whether oil consumption will recover as projected this year due to signs that the economic upswing in the world’s top oil importer, China, is losing pace.
