The price of Brent oil is now around $65 (approx. DKK 460) per barrel – ten dollars lower than before Donald Trump's announced tariffs on April 2. Fears of a global slowdown and lower oil demand now dominate the market. This is reported by the Frankfurter Allgemeine Zeitung.
The organization OPEC has just lowered its expectations for oil demand for both this year and next year, but remains more optimistic than many analysts. At the same time, the US energy authority EIA has increased the risk of an oversupply of oil globally.
The first reactions to Trump's so-called "Liberation Day" triggered a sharp drop from around $75 (530 DKK) per barrel to a temporary low of $58 (410 DKK) – the lowest level in four years. Since then, the price has risen slightly, but not back to previous levels.
- If the two most important economic regions in the world, which together account for more than a third of global oil consumption, are heading for a slowdown, it will naturally have a negative impact on oil prices, says Cyrus de la Rubia, an economist at Hamburg Commercial Bank.
According to several market assessments, OPEC's decision to increase production may have been made under pressure from the US government. UBS and Goldman Sachs continue to assess that the oil price faces a number of downside risks. The latter has lowered its forecast for Brent oil to $66 (approximately DKK 470) this year and $58 (DKK 410) next year.
At the same time, the market is closely following diplomatic signs of a thaw between the US and Iran, which could potentially lead to relaxed sanctions and more Iranian oil on the world market.
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