Crude Oil Prices Tumble on China COVID Rise, Economic Slowdown Concerns, ANZ Bank Says

July 13, 2022 Stu Turley Commodities, Crude Oil News, International News
On April 20, 2020, West Texas Intermediate crude, the U.S. benchmark, dropped to minus $40 a barrel. Oil industry leaders were forced into drastic choices that would affect the industry’s growth and its appeal to investors for years to come. Photographer: Justin Merriman/Bloomberg

Crude oil prices tumbled overnight Tuesday as growing COVID-19 cases in China increased ongoing worries of an economic slowdown, both fueling fears of demand destruction, Australia’s ANZ Bank said in a Wednesday note.

The prospect of more supply further compounded the pessimistic outlook for oil, the bank noted. US President Joe Biden is set to ask Saudi Arabia to boost production during his visit there, while French President Emmanuel Macron is hosting United Arab Emirates ruler Mohammed bin Zayed next week.

France is reportedly in talks with the UAE about increasing supplies as the European Union weans itself off Russian energy, ANZ Bank said.

Meanwhile, the Organization of the Petroleum Exporting Countries in its latest outlook expects demand to exceed supply by more than 1 million barrels per day in 2023. To fill the gap, OPEC would need to significantly ramp up output, the bank said. This comes as members fall behind their target volumes due to underinvestment and political instability.

About Stu Turley 3290 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.

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