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.
Wildfires in Western Canada have forced the evacuation of oil production facilities in Northern Alberta. According to Bloomberg, the blasting in the Cold Lake area threatens national enterprises and forces them to reduce fuel output in the country.
Saudi Arabia secured an agreement from all OPEC+ countries for a third consecutive significant increase in oil production, despite resistance from Russia and its allies. The kingdom decided to lower energy prices to influence quota violators and regain its share of the global market.
According to Morgan Stanley, OPEC+ will announce three more production increases this year, putting oil prices under additional downward pressure. The bank suggests that the previous volume of voluntary production cuts, totaling 2.2 million barrels per day, may be completely phased out by October.
Goldman Sachs Group Inc. expects OPEC+ to increase oil production volumes for the fourth time in August. These forecasts differ from the bank's previous position when experts anticipated a possible pause in production growth after the recent alliance representatives' meeting.
On Monday, the oil price is rising on the back of mounting geopolitical and trade risks that intensified over the past weekend. Meanwhile, the announced increase in OPEC+ crude production by 411 thousand barrels per day fell short of the most pessimistic forecasts.
A decrease of the indicator value may contribute to the fall in quotes of WTI, Brent.
A decrease of the indicator value may contribute to the rise in quotes of WTI, Brent.
A decrease of the indicator value may contribute to the rise in quotes of NG, WTI, Brent.
Reuters reports that oil prices are set for the second weekly decline amid expectations of another OPEC+ production hike in July and renewed global trade uncertainty. So far this week, both Brent and WTI have fallen 1.3%.
According to Bloomberg, OPEC+ is likely to announce another oil supply increase this Saturday, but the actual volume may fall short of expectations. As the agency notes, eight members have committed to boosting crude production by 960,000 barrels per day by June, compared to March levels.
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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.
