Oil prices were down slightly in early Asia trade on Monday, but remained above US$80 per barrel, buoyed by OPEC+’s pledges to reduce more output, while investors looked to Chinese economic data for indications of a demand recovery from the world’s second largest oil consumer.
By 9.41 A.M. Bangkok time, Brent crude futures lost 2 cents to US$86.29 per barrel, while US West Texas Intermediate crude fell to US$82.50 per barrel.
Last week, both contracts rose for a fourth consecutive week due to the International Energy Agency’s (IEA) projection of record demand in 2023 of 101.9 million barrels per day (bpd), an increase of 2 million bpd from 2022.
Yet, the IEA warned in its monthly report that the output cuts planned by OPEC+ risk increasing an oil supply imbalance predicted in the second half of the year, which could damage consumers and a global economic recovery.
