in

Oil Falls 3% Due to Concerns Regarding Future OPEC+ Production

Oil exports

Oil prices fell almost 3% on Thursday as OPEC+ declared they would only boost production in August by the same quantity as originally planned, despite tight supply, but left the market uncertain about future output.

There was a 3% drop in Brent crude futures for September delivery to settle at $109.03 a barrel. The August contract, which expires on Thursday, fell $1.45, or 1.3%, to settle at $114.81 a barrel.

Crude futures for U.S. West Texas Intermediate (WTI) declined 3.7%, or $4.02, to settle at $105.76 a barrel.

After two days of discussions, the OPEC+ group of producers, including Russia, decided on Thursday to maintain its output strategy.

OPEC+ had already agreed to increase production by 648,000 barrels per day (bpd) per month in July and August.

Since Russia’s invasion of Ukraine, sanctions on Russian oil have contributed to increasing energy prices, driving inflation and recession fears. 

On Thursday, oil prices went down alongside Wall Street. The S&P 500 was set for its worst first 6 months since 1970 due to concerns that central banks’ efforts to control inflation will delay global economic growth.

In the meantime, Russian Deputy Prime Minister Alexander Novak warned on Thursday that a potential import price cap on Russian oil could increase prices.

Original source material for this article taken from here

What do you think?

27 Points
Upvote Downvote

Written by Olivia Woods

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Oil and gas industry

ExxonMobil and Imperial Oil to Sell Alberta Assets to Whitecap Resources

LNG Port

Ottawa Shows Interest in East Coast LNG Exports as European Energy Crisis Continues