Oil prices fall on fears of higher supply at the end of the year
4 June 2024 09:35
Oil prices in Asia fell on Tuesday, continuing to decline after falling to their lowest level in four months the day before. Investors are concerned about a possible increase in supply at the end of the year amid cautious demand forecasts from the key consumer, the United States. This was reported by Reuters with reference to "Komersant Ukrainian"
Brent crude oil futures fell 49 cents or 0.63% to $77.87 per barrel. On Monday, the price of Brent fell below $80 for the first time since 7 February after falling by more than 3%. Futures for US WTI crude oil fell 51 cents or 0.51% to $73.71.
The Organisation of the Petroleum Exporting Countries and allies, known as OPEC, agreed on Sunday to extend most of the oil production cuts until 2025, but left room for a gradual phase-out of voluntary cuts by eight member countries from October.
Oil prices have been under pressure recently from two issues: OPEC’s forecasts that production cuts will begin to taper off in October 2024 and weak demand data, including worse-than-expected US industrial production figures.
Signs of slowing demand growth have weighed on oil prices in recent months. US fuel consumption data remains in focus. The average price of petrol in the US fell to $3.50 per gallon.
Concerns about macroeconomic factors from the world’s largest oil consumer are likely to continue to drive oil prices in the near future, some analysts say.
