23.1 C
Dubai
Saturday, November 9, 2024
spot_img

Due to increased OPEC production and Covid concerns, U.S. oil prices fell 5% to below $70

[ad_1]

Petroleum pipelines, pumping equipment, and transmission lines dot the landscape of California’s “Petroleum Highway” (Route 33) along the northwest side of the San Joaquin Valley.

George Rose | Getty Images News | Getty Images

West Texas Intermediate Crude Oil Futures As OPEC and its allies agreed to increase production and the delta Covid variant threatened global demand, oil prices fell below the critical $70 level for the first time in more than a month on Monday.

US oil fell more than 5%, hitting an intraday low of $67.84. The contract is now nearly 12% below the recent high of $76.98 set on July 6, which is the highest level in more than six years.International benchmark Brent crude oil It fell 4.8% to US$70.10 per barrel.

The Group of 23, or OPEC+, Agree to sunday Starting in August, the monthly output will increase by 400,000 barrels. The increase in production will continue until September 2022, when the nearly 6 million barrels of crude oil still detained by the group every day will all be put on the market again.

As Saudi Arabia and the United Arab Emirates disagree on the latter’s benchmark production quota, the group announced the news after the breakdown of its first meeting on July 1.

“We believe [Sunday’s] Goldman Sachs stated in a report to clients that the transaction supports our constructive oil price view, that supply is increasingly becoming a source of bullish impulse and shows evidence of non-OPEC supply shortages in the coming months. The company pointed out that U.S. disciplined producers provided a lower limit for oil prices, although it pointed out that delta variants may cause price volatility in the coming weeks.

The OPEC+ meeting in July did not reach an agreement, causing the oil market to fall into turmoil because it opened the door to the organization’s possible dissolution, and each country pursues independent production policies.

“This is an update of OPEC + Oath,” Royal Bank of Canada’s Helimacroft on CNBC on Monday”Global exchange“We think the market can definitely absorb an additional 400,000 barrels of oil per month… This is a constructive agreement. “

Do you like this article?
Exclusive stock selection, investment philosophy and CNBC global live broadcast
sign up CNBC Professional Edition
Start your Try it for free now

[ad_2]

Source link

Related Articles

Sheikh Mohammed Unveils Bold UAE Investment Strategy: AED 2.2 Trillion FDI Goal to Drive Innovation and Sustainable Growth by 2031

Sheikh Mohammed Unveils Bold UAE Investment Strategy: Aiming for AED 2.2 Trillion in FDI to Power Innovation and Sustainable Growth by 2031 In a significant...

Pioneering AI Innovations with Abis Ali, Co-Founder of Raen AI

Pioneering AI Innovations with Abis Ali, Co-Founder of Raen AI In an era where artificial intelligence is transforming industries worldwide, Raen AI stands out as...

From Vision to Reality How Harshit Aggarwal’s Novamax Industries is Redefining Cooling Solutions

In the fast-evolving world of startups, where passion meets perseverance, Harshit Aggarwal has carved out an impressive path with Novamax Industries LLP. Founded in...

8 Tips for Choosing the Right Pet Insurance in Dubai

As a pet owner in Dubai, you want to be sure that your companion receives the best care possible. But we understand that vet...

The Journey of Berrylush: A Story of Passion, Perseverance, and Purpose

In 2018, Berrylush was born from the shared vision of two IIM graduates, AnushaChandrashekar and Alok Paul, who saw a glaring gap in the...

Latest Articles