Due to uncertainty surrounding Opec+’s decision to increase supply into a global market where demand has already begun to wane, oil prices fell by more than $1 on Tuesday.
With the market still reeling from a four-month low the day before, Brent crude futures fell $1.11, or 1.4%, to $77.25 a barrel by 1336 GMT. After dropping more than 3%, Brent’s closing price on Monday was below $80 for the first time since February 7.
At its lowest point on Tuesday, Brent was trading at $76.76, less than $2 below the low point of $74.79 set at the start of the year.
US West Texas Intermediate oil futures decreased to $73.13 by $1.09, or 1.5%. WTI dropped 3.6% on Monday, closing close to a four-month low.
Opec+, the Organization of the Petroleum Exporting Countries, and its allies, led by Russia, decided on Sunday to extend most of their oil output cuts until 2025. However, they allowed space for the eight members’ voluntary reductions to be unwound gradually, starting in October.
According to Tamas Varga of oil broker PVM, “The market reaction is depressing to anyone who produces oil and brings elevated joy for consumers.
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