OPEC+ delegates are reportedly considering a preliminary plan to increase oil extraction by 548,000 barrels per day starting in September. This move, if confirmed in their August 3 video conference, would bring the cartel and its partners’ supply increases to a full 2.2 million barrels for 2023, a year ahead of schedule.
Despite recent geopolitical tensions, including the Israeli-Iranian conflict, crude oil prices have been under downward pressure. Brent crude futures were trading around $69 per barrel on Monday, marking a 7% decrease since the start of the year. This price decline is attributed to a combination of factors, including slowing Chinese demand, increased U.S. production, and trade tariffs imposed by the trump administration, all contributing to expectations of an economic slowdown.
Though, the oil market has shown resilience. Prices have not fallen further despite the unexpected increase in OPEC+ offerings. In fact, Brent crude saw a $1.4 (2.4%) increase on a single day recently, even with the new production news. Strong summer demand,a tight diesel market,and recent U.S. trade agreements are likely supporting current price levels.
Disclaimer: This article discusses market trends and economic factors related to oil prices. It does not constitute financial advice.readers should consult with a qualified financial advisor before making any investment decisions.
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