Fundamental analysis
21 June, 2022
Oil prices edged down on Monday, reversing earlier gains, as concerns about slowing global economic growth and fuel demand offset worries about tightening supplies. Oil from Russia, the world's second-largest exporter, remains out of reach to most countries because of Western sanctions over the war in Ukraine. The impact has been partly mitigated by the release of strategic petroleum reserves, led by the United States, and a ramp-up of production from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, together known as OPEC+, although that is thinning the world's buffer against further supply disruption. In Libya, oil production remained volatile following blockades by groups in the country's east. The Libyan Oil Minister Mohamed Oun told Reuters on Monday that the country's total production is at about 700,000 barrels per day (bpd). Libya's output had fallen to 100,000 to 150,000 bpd, a spokesman for the oil ministry said last week. Oil products exports from China, once a major exporter, continued to decline, keeping global supplies tight. The country's gasoline exports in May fell 45.5% from a year earlier.
