WTI crude fell below $69, and Brent to $72 per barrel
Kyiv • UNN
Oil prices are declining due to Saudi Arabia's decision to lower prices and the increase in OPEC+ quotas. Analysts forecast further decline to $60 per barrel.
Global oil prices continue to decline amid concerns about oversupply following Saudi Arabia's decision to cut its oil prices and increase production quotas by OPEC+ countries. This is reported by Bloomberg, writes UNN.
Details
The price of US West Texas Intermediate (WTI) crude fell below $69 per barrel, while Brent is trading near $72 per barrel.
State-owned Saudi Aramco cut the price of its Arab Light grade for Asian buyers by $11 per barrel, to a level of $1.50 below the regional benchmark. According to Bloomberg, the company last implemented such significant discounts during the price wars in 2020 and 2015.
Market expects oversupply
The price decline followed the decision by OPEC+ countries, including Saudi Arabia, to increase oil production quotas next month, which heightened expectations of a rise in global supply.
We have a target oil price of $60 over the next month. The price cuts announced by Saudi Arabia usually reflect changes in market prices
Bloomberg notes that oil prices are also under pressure due to the partial resumption of shipping through the Strait of Hormuz and easing concerns about supply disruptions after a temporary reduction in tensions in the Middle East. Leading banks, including Goldman Sachs and Morgan Stanley, have already warned of the risk of a return of a global oil surplus in the market.
Oil prices fell after OPEC+ decision to increase production06.07.26, 02:57 • 7680 views