On Tuesday, oil prices are declining due to pressure from concerns over escalating trade tensions. Market participants are worried about the impact of increasing friction between the US and EU on economic activity and fuel demand.
According to Bloomberg data, Russia's oil production in June amounted to 9.022 million barrels per day. This is 28,000 barrels per day below the established limit, including mandatory compensatory cuts.
Oil rose after Saudi Arabia raised its official selling prices for its benchmark Arab Light crude for Asian buyers. The move reinforced market confidence that it can absorb additional OPEC+ barrels, Bloomberg reports.
An increase of the indicator value may contribute to the rise in quotes of WTI, Brent.
Saudi Arabia has increased official prices for its benchmark crude oil for Asian buyers next month. The price hike exceeded market expectations, demonstrating Riyadh's confidence in the oil market's resilience and its ability to absorb growing OPEC+ supply.
On Saturday, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced a decision to accelerate the restoration of previously reduced volumes of oil production in August. According to Giovanni Staunovo from UBS, this move creates risks of a surplus and price decline.
According to Goldman Sachs’ estimates, OPEC+ will increase its oil production quota by 550,000 barrels per day in September. This move will allow the alliance to complete the phased return of the voluntary production cuts, bringing 2.2 million barrels per day back to the market.
OPEC+ has agreed to raise its oil output by another 548,000 barrels per day (bpd) in August. Meanwhile, monthly hikes were 411,000 bpd between May and July and 138,000 bpd in April.
An increase of the indicator value may contribute to the fall in quotes of WTI, Brent.
An increase of the indicator value may contribute to the fall in quotes of WTI, Brent.
According to Bloomberg, China has refrained from purchasing American crude oil for three consecutive months. This marks the longest period without Chinese energy purchases from the US since 2018. These developments have become an additional pressure factor for oil producers.
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Oil price movements are more than just charts on a screen. It is one of the key drivers of the global economy. Understanding these dynamics helps in making rational decisions and adapting to changes.
