Drop in oil price and OPEC's demand warnings

WTI crude oil fell 15 cents, or 2% to $83.11 Thursday 13.04 as investors is concerned about a possible U.S recession and weaker oil demand. WTI was the highest in more than a month on Wednesday because of the hope that Federal Reserve were to stop raising interest rates after seeing the U.S dollar index in March. The Organization of the Petroleum Exporting Countries (OPEC) released on Thursday a monthly report and highlighted rising stocks and difficulties with global economy while flagging downside risks to the summer oil demand.

In a monthly report released on Thursday, OPEC highlighted rising stocks and difficulties with global economy while flagging downside risks to the summer oil demand.

The research clarified the factors that led to OPEC+, which also includes Russia and other OPEC allies, to declare a sudden production cut at the beginning of this month.

Despite Thursday’s declines, the crude oil futures for both WTI and Brent has been rising this month, and it is continuing to fuel hopes of a potential future tightening in the oil markets. I addition, OPEC’s unchanged 2023 global demand growth prediction also prevented further drops in oil prices.