The majority of oil prices drop in the market after having immense pressure from the rising supply concerns. Both the United States and European oil drops in the market as the global oil supply report increasing number of supply.
The West Texas Intermediate crude was the first to drop some figures in the market after the holiday on the previous session. On the other hand, the Brent futures managed to hit a tremendous increase despite the holiday rush.
Furthermore, the announcement from Saudi Arabia and Russia also weighted the oil prices on the previous session. Both of the powerhouse countries announced their intent to increase their oil production as the United States continues with their rapid and increasing production rate.
Yesterday’s trading saw a light to moderate sessions due to the public holiday from both the United States and the United Kingdom.
Oil Prices from the Previous Session
The July prices for WTI managed to shed some percentages on the previous market by a total of 95 cents, or 1.4%, to $66.93. The U.S. crude futures were also dipping at $66.47. Its price was down by a total of $1.41, hitting a new low after sinking to a fresh six-week low of $65.80.
On the other hand, the Brent managed to hold its ground in the market as it tallied better than expected figures on the previous quarter. It garnered a total of 42 cents increase, or o.6%, to $75.72 a barrel for its July futures.
The U.S. crude production looks to show no stop on producing despite the influx of negative news and prices from each succeeding session.
The prices are heavily pressured on the statement Russia and Saudi Arabia made. The announcement caused a commotion in the market due to the fact that this is the first time since 2016 that an increase in the production is made.
Going back to the OPEC and non-OPEC production cut, the countries join forces as they slashed their current barrels per day production by a whopping 1.8 million. The joints efforts managed to buoy the oil prices into interstellar prices.
The prices have been generating great figures in the market; it even managed to drag the dollar prices down on the whole first quarter of this year. The greenback suffered major dips in the market despite having a great backup from the Federal Reserve.
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