Economic slowdown weakened energy demand. Efforts to decrease supply fail.
Brian Swint 23, reporter covering central banks, energy, and markets, 7-6-2023, “Exxon Stock Is Slipping. Oil Prices Are Falling.,” https://www.barrons.com/articles/russia-saudi-arabia-oil-exxon-94a296c3, oj
Oil prices slipped on Thursday as concerns about energy demand weighed against recent promises from Russia and Saudi Arabia to lower production.
Saudi Arabia and Russia, two of the world’s biggest producers of crude, tried to goose prices at the start of the week by announcing an extension of their voluntary output cuts. That comes on top of other pledges from the Organization of the Petroleum Exporting Countries to reduce global oil supply.
It hasn’t worked. Concerns that demand for energy is weakening were reinforced on Wednesday by data showing China’s services sector expanded at the slowest pace in five months in June.