Oil falls again amid a stronger dollar and expectations from OPEC+
23 May 12:26
World oil prices declined on Friday. This is due to the strengthening of the US dollar and fears of a possible increase in oil production by OPEC countries, "Komersant Ukrainian" reports with reference to Reuters.
According to OilPrice.com, as of 07:30 Kyiv time, futures for Brent crude oil fell by 32 cents to $64.12 per barrel. US West Texas Intermediate (WTI) lost 33 cents to $60.87 per barrel. Over the week, Brent fell by 2% and WTI by 2.7%.
Читайте нас у Telegram: головні новини коротко
The situation in the United States
One of the key factors putting pressure on prices was the strengthening of the US dollar. On Thursday, it rose against a basket of other currencies after the US House of Representatives passed President Donald Trump ‘s bill on tax and budget cuts. Since oil is usually quoted in dollars, the strengthening of the currency makes it more expensive for foreign buyers, which negatively affects demand.
Another important US factor for the market was a significant increase in US crude oil stocks at the beginning of the week. According to brokerage The Tank Tiger, demand for crude oil storage in the United States has risen sharply to levels seen during the COVID-19 pandemic. This is attributed to the expectation of a sharp increase in supply from OPEC member countries and their partners.
On Friday, investors are also waiting for the publication of data from Baker Hughes on the number of oil and gas rigs in the United States. This indicator is considered an indicator of the future level of supply in the market.
OPEC
Additional pressure on the market was created by Bloomberg’s information that OPEC is considering another significant increase in production. In particular, at the meeting on June 1, the option of raising the quota by 411 thousand barrels per day in July will be discussed. However, the final decision has not yet been made, the newspaper said, citing coalition delegates.
Earlier, Reuters also reported that OPEC may accelerate the pace of production growth in the coming months.
Читайте нас у Telegram: головні новини коротко
