Oil prices fell on concerns about short-term demand
Oil prices fell as fears over short-term demand outweighed expectations of reduced supply later in the year.
West Texas Intermediate was back 0.5% at $75 a barrel after a 1.53% drop on Monday.
Oil is down more than 5% this year, and the losses are due to a lack of economic outlook. Central banks continue to raise rates.
OPEC plans to start cutting output this week.
BP, an oil giant, posted a higher profit than anticipated in the first quarter of the year; however, as soon as oil prices surged due to Russia’s conflict in Ukraine, the numbers dropped from their previous peak.
The British energy giant posted a core replacement cost profit.
That compares with a profit of $4.9 billion in the fourth quarter. Analysts had expected BP to post a first-quarter profit of $4.32 billion.
BP said its first-quarter profit reflected broad oil and gas trading.
BP, one of the first energy companies to announce it wanted to achieve net-zero emissions by 2050, said amid its record annual profits that it now wants to lower its emissions reduction targets.
The move sparked uncertainty among shareholders last week.
A group of 17% shareholders – down from 15% last year but down from 21% in 2021 – voted in favor of the law by the Dutch group Follow This. Fuel-burning is the main cause of the climate emergency.
TotalEnergies began Big Oil’s earnings season with a quarterly statement that was beyond what analysts had predicted. The company reported a 27% decline in revenue to $6.5 billion in the first three months of 2023. This is due in part to low fossil fuel prices.
Shell (UK) and Equinor (Norway) are planning to announce their financial results for the quarter this week.