Oil Prices Decline Amid OPEC+ Decision and U.S. Signals

by Roman Cheplyk
Tuesday, June 4, 2024
Oil Prices Decline Amid OPEC+ Decision and U.S. Signals

The oil market experienced significant losses following the recent OPEC+ decision. Investors are closely monitoring new signals from the United States, the world’s largest economy

 Let’s delve into the factors influencing this rapid decline in oil prices.

Market Collapse on June 4 On Tuesday, June 4, the oil market witnessed a sharp collapse. Benchmark crude dropped by more than 1%, extending losses from the previous day. Notably, this decline marked a four-month low.

Reasons Behind the Sharp Fall Investors are cautious due to expectations of increased supply later in the year. Signs of weakening U.S. demand have contributed to this downward trend, as reported by Reuters.

Current Oil Prices According to Bloomberg data, the current oil prices are as follows:

  • Brent Oil Futures: $76.89 per barrel (-1.88%)
  • WTI Contracts: $72.65 per barrel (-2.12%)

Price Movements Brent crude futures declined by $1.14 (1.5%), with crude oil trading at $77.22 per barrel. This represents a more than 3% drop from Monday’s trading. Notably, oil prices fell below $80 per barrel for the first time since February 7.

Meanwhile, West Texas Intermediate (WTI) crude oil contracts fell by $1.23 (1.7%), with WTI trading at $72.99 per barrel. The previous trading session saw a 3.6% decrease, nearly reaching a four-month low.

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