Economic Concerns and a Strong Supply Outlook Hold Oil Prices Back

Rising geopolitical risk pushed Brent well past $80 last week, but the brief price rally has been dampened by continued economic concerns and a strong supply situation.Chart of the Week- Saudi Arabia’s government ordered the state oil company Saudi Aramco (TADAWUL:2222) to halt its oil expansion plan and maintain a production capacity of 12 million b/d, almost 10% lower than the current target of 13 million b/d.- The Saudi economy posted one of the steepest contractions in the 21st century, with its 2023 GDP falling by 1.1% year-on-year,…